Attorney General William Tong has announced a $149.7 million multistate settlement with Mercedes-Benz USA and Mercedes-Benz AG over the use of undisclosed emissions defeat devices in their diesel vehicles. The agreement, which involves 50 attorneys general, addresses violations of state laws that prohibit unfair or deceptive trade practices. Connecticut is set to receive nearly $5 million from the settlement.
“Mercedes-Benz hid devices inside their vehicles to cheat emissions tests, knowingly pumping out toxic emissions far exceeding legal limits. Their deception hurt their customers and harmed air quality for all Americans, and we’re holding them accountable. This settlement, as with others previously reached with Volkswagen and Fiat Chrysler, sends millions of dollars back to states as well as comprehensive relief for consumers who purchased these defective vehicles. Connecticut led the nationwide coalition reaching today’s settlement and will continue to lead in protecting consumers from bad actors who defraud and deceive the American people,” said Attorney General Tong.
“Consumers deserve to know exactly what they are purchasing, and they should be able to reasonably assume that any new car they buy is in compliance with all laws and regulations,” said Department of Consumer Protection Commissioner Bryan T. Cafferelli. “This deception was unfair to consumers and a clear violation of public trust. Thank you to the Attorney General’s office for their work to hold companies accountable for their advertising and marketing practices.”
Between 2008 and 2016, Mercedes allegedly manufactured more than 211,000 diesel cars and vans equipped with software designed to pass emissions tests but emit higher levels of nitrogen oxides during regular operation. These pollutants can cause respiratory problems and contribute to smog formation.
Under the terms of the settlement, Mercedes-Benz will pay $120 million immediately to participating states, while an additional $29.7 million may be waived if certain consumer relief conditions are met. Approximately 3,181 affected vehicles are registered in Connecticut.
The consumer relief program applies to around 39,565 vehicles nationwide that had not been repaired or removed from roads by August 1, 2023. Mercedes is required to install approved emission modification software on these vehicles at its own cost. Consumers will also receive an extended warranty and a payment of $2,000 per affected vehicle.
The company must also comply with new reporting requirements, change its business practices regarding emissions claims for diesel vehicles, and avoid further deceptive marketing related to emissions compliance.
This action follows previous settlements between states and other automakers over similar conduct: Fiat Chrysler paid $72.5 million in 2019; Bosch paid $98.7 million in 2019; Volkswagen agreed to a $570 million settlement in 2016.
Connecticut worked alongside Delaware and Maryland in leading this investigation and negotiation process.
