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CT AG Settles with Carvana for $1.5M Over Title Delays and Deceptive Sales

CarvanaJanuary 14, 2025Connecticut Attorney General

Penalty Amount

$500,000

Summary

Connecticut Attorney General William Tong announced a $1.5 million settlement with Carvana to resolve hundreds of consumer complaints about delays in title and registration, delayed payments to sellers, and deceptive vehicle representations. The settlement includes a $1 million restitution fund for affected consumers and a $500,000 penalty to the state, with $250,000 suspended if Carvana complies. Carvana must comply with Connecticut laws and improve customer service.

Remedy

Carvana must pay a $500,000 penalty to Connecticut, establish a $1 million consumer restitution fund, comply with state laws requiring timely title and registration, strengthen customer service systems, and appoint a direct contact for state complaints. $250,000 of the penalty is suspended upon full compliance.

Monetary PenaltyConsumer RefundsCompliance ProgramConsent Decree

Contract Impact

In-house legal teams should review vendor agreements (if Carvana is a supplier), customer purchase contracts, and seller agreements (for entities selling vehicles to Carvana). Key clauses to scrutinize include: title and registration delivery timelines, seller payment terms and schedules, representations and warranties regarding vehicle condition/features, compliance with state consumer protection laws, dispute resolution mechanisms, and penalty or suspension conditions. Changes may be needed to add explicit deadlines for title/registration delivery, ensure accurate and non-misleading vehicle descriptions, incorporate restitution or offset provisions for consumer harm, establish direct state contact requirements, and include compliance monitoring or audit rights.

Contract Search Terms

title transfer timelineregistration documentation requirementseller payment schedulevehicle condition representationsdeceptive trade practices clauseconsumer restitution fund provisionstate law compliance certificationcustomer service escalation protocolpenalty suspension conditionssettlement compliance monitoring

Violation Types

Entity Details

Entity

Carvana

Industry

Automotive

Official Sources

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