Connecticut reaches $1.5M settlement with Carvana over customer complaints

In January 2025, Connecticut Attorney General William Tong announced a $1.5 million settlement with Carvana following hundreds of consumer complaints received since 2019. The complaints alleged a pattern of problems, including delayed vehicle title and registration documents, delayed payments to consumers selling or trading in vehicles, inaccurate representations of vehicle condition and features, and poor customer service.

Under the agreement, $1 million was allocated to a consumer restitution fund for eligible Connecticut residents who suffered financial losses related to Carvana's actions, while Carvana agreed to pay a $500,000 civil penalty to the state. Half of that penalty may be suspended if the company fully complies with the settlement's requirements.

The settlement also requires Carvana to strengthen its business practices in Connecticut. Among other obligations, the company must comply with state title and registration laws, improve customer service, provide a direct contact for state officials handling complaints, and maintain ongoing compliance with Connecticut consumer protection requirements. State officials said they will continue monitoring the company's performance.

Attorney General Tong stated that the settlement was intended to compensate consumers who were harmed while addressing systemic issues identified during the state's investigation. Carvana, in its public response, stated that it cooperated with the investigation and attributed many historical issues to rapid growth and pandemic-era operational challenges while expressing its commitment to improving the customer experience.

Source: CT Insider – "Connecticut reaches $1.5M settlement with Carvana over customer complaints" and the Connecticut Office of the Attorney General.