Attorney General Steve Marshall on Monday joined a coalition of 50 attorneys general announcing a $149,673,750 settlement with Mercedes-Benz USA and Mercedes-Benz Group AG for violating state laws prohibiting unfair or deceptive trade practices by marketing, selling, and leasing vehicles equipped with illegal and undisclosed emissions defeat devices designed to circumvent emissions standards.
The settlement also includes more than $200 million in potential consumer relief. In Alabama, the state has identified approximately 11,906 vehicles that have been sold or registered.
Alabama will receive $4,934,299 through the settlement.
Beginning in 2008 and continuing to 2016, the states allege Mercedes manufactured, marketed, advertised, and distributed nationwide more than 211,000 diesel passenger cars and vans equipped with software defeat devices that optimized emission controls during emissions tests, while reducing those controls outside of normal operations. The defeat devices enabled vehicles to far exceed legal limits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog. Mercedes engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, that it was unable to meet while complying with applicable emission standards.
Mercedes concealed the existence of these defeat devices from state and federal regulators and the public. At the same time, Mercedes marketed the vehicles to consumers as “environmentally-friendly” and in compliance with applicable emissions regulations.
“This settlement sends a clear message to consumers: they deserve honesty, and deceptive marketing won’t be tolerated,” Marshall said.
The settlement requires Mercedes-Benz USA and Mercedes-Benz Group AG to pay $120 million to the states upon the effective date of the settlement. An additional $29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program.
The consumer relief program extends to the estimated 39,565 vehicles that had not been repaired or permanently removed from the road in the United States by August 1, 2023.
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