The luxury automaker Mercedes-Benz USA and its parent company, Daimler, have reached a significant settlement of nearly $150 million in response to allegations of using illegal emissions defeat devices in their vehicles. The agreement, announced by Oregon Attorney General Dan Rayfield, is the result of a coordinated effort involving a coalition of 50 attorneys general from across the United States, according to the Oregon Department of Justice.
This settlement addresses the deceptive practices that allowed vehicles to bypass environmental regulations, resulting in nitrogen oxides emissions that exceeded legal limits. These actions not only violated state consumer protection laws but also contributed to air pollution, impacting public health.
Dan Rayfield emphasized the importance of accountability, stating, “Oregonians expect the cars they buy to be safe, legal, and honestly marketed.” The settlement aims to provide monetary relief to consumers who were misled by the automaker’s claims of producing “environmentally-friendly” diesel vehicles.
Under the terms of the settlement, Mercedes-Benz USA and Daimler will pay an initial sum of $120 million to the states involved. An additional $29.6 million will be set aside, pending the establishment of a comprehensive consumer relief program. This program will include updates to the emissions software for affected vehicles and compensation of $2,000 per vehicle for approximately 39,565 impacted consumers, including 4,094 in Oregon. Owners of these vehicles must be compensated by August 1, 2023, or their vehicles will be removed from the road.
To ensure compliance, the settlement requires the companies to adhere to a strict reporting schedule and revise their business practices. This aims to prevent any future misleading advertising regarding diesel vehicle emissions.
The case reflects a broader trend in the automotive industry, following similar settlements with other major manufacturers. For instance, Volkswagen paid $570 million in 2016, while Fiat Chrysler and Robert Bosch GmbH settled for $72.5 million and $98.7 million, respectively, in 2019.
The coalition of attorneys general, representing states such as California, Texas, Florida, and New York, underscores the collective commitment to enforcing environmental standards and protecting consumer rights. This settlement serves as a clear message to the automotive industry about the severe consequences of undermining environmental regulations and consumer trust.
With this settlement, affected consumers can expect both financial compensation and assurances that the automaker will enhance its compliance with environmental laws moving forward.
