A well-known D.C.-area car dealer has settled a Federal Trade Commission complaint that it failed to disclose some of its used cars had unrepaired safety recalls, but denies any wrongdoing.
The FTC took issue with a past Koons Automotive website “guarantee” that all of its vehicles go through a “rigorous and extensive” inspection before being sold. The complaint alleged Koons’ unrepaired recalls included the key ignition switch, alternator defects that could cause shutdowns or electrical fires, and a rear suspension defect that risked fuel leaks or fire.
“We agreed to a settlement with the FTC to avoid costs and disruption of litigation,” read a statement from Koons, which maintains it believes it has broken no law.
The settlement prohibits Koons – for the next 20 years – from claiming its used cars are safe or have been rigorously inspected unless they have no unrepaired safety recalls or Koons clearly states the existence of those recalls. Koons also must notify people who bought used cars with open recalls after July 1, 2013.
Koons has 19 dealerships in the D.C. and Baltimore area.
General Motors and Oregon-based Lithia Motors, which has more than 100 dealerships, settled similar complaints.
Read the complete statement from Koons: