Mercedes-Benz agrees to nearly $150M multistate settlement over emissions, consumer fraud claims
TRENTON, N.J. — Mercedes-Benz USA and Mercedes-Benz Group AG have agreed to pay nearly $150 million to resolve multistate consumer fraud and environmental claims tied to diesel vehicles equipped with undisclosed emissions-related software, New Jersey Attorney General Matthew J. Platkin announced.
According to Platkin, a bipartisan coalition of attorneys general from all 50 states reached a $149,673,750 settlement with Mercedes following a nationwide investigation into allegations that the automaker violated state consumer and environmental protection laws. The settlement resolves claims that Mercedes made, sold and distributed vehicles containing illegal and undisclosed software allegedly designed to circumvent federal and state emissions standards, while concealing that software from regulators and consumers.
Attorney General Platkin, along with the New Jersey Department of Environmental Protection and the Division of Consumer Affairs, launched the investigation under the state’s Air Pollution Control Act, Low Emission Vehicle Program Regulations and Consumer Fraud Act.
In a complaint filed alongside the consent judgment, the states allege that between 2008 and 2016 Mercedes manufactured and marketed more than 211,000 diesel passenger cars and vans nationwide that contained “defeat devices” — software that optimized emissions controls during testing but reduced those controls during normal driving conditions.
“Mercedes misled New Jersey consumers to boost their vehicle sales, taking advantage of hard-working New Jerseyans and endangering our air quality and the health of our residents,” said Attorney General Platkin. “Automakers are subject to the same legal rules as every other business: They must be truthful about the products they sell and ensure those products comply with the law. I am proud to stand with a bipartisan coalition of attorneys general in holding Mercedes accountable for its deceitful conduct.”
DEP Commissioner Shawn M. LaTourette said the settlement reinforces the state’s commitment to protecting air quality and public health.
“New Jersey is proud to stand with our partner states across the country in reaching this settlement with Mercedes-Benz USA and Mercedes-Benz Group AG that will create opportunities to improve air quality and protect public health,” LaTourette said. “The DEP thanks Attorney General Platkin and his team for securing justice for our state and others across the nation harmed by the deceptive and unlawful use of emission defeat devices in vehicles marketed and sold by these companies.”
Elizabeth M. Harris, acting director of the Division of Consumer Affairs, emphasized the importance of transparency for consumers.
“Consumers have a legal right to know that the products they are buying, especially a purchase as consequential as a vehicle, are living up to the promises and claims of the company selling those products,” Harris said. “DCA will always hold businesses and corporations accountable for violating consumer trust.”
State officials said at least 15,297 affected vehicles were sold or operated in New Jersey between model years 2009 and 2016, all equipped with “BlueTEC” diesel technology that allegedly included the undisclosed software. The software allowed vehicles to exceed legal limits for nitrogen oxides emissions, which contribute to respiratory illness and smog, the states allege.
Under the settlement, Mercedes will pay $120 million to participating states. An additional $29,673,750 will be suspended and may be waived if the company completes a comprehensive consumer relief program. New Jersey is expected to receive $11,066,162 from the settlement.
The agreement also requires Mercedes to install approved emissions-modification software on approximately 39,565 vehicles nationwide that had not been repaired or removed from service as of Aug. 1, 2023. Affected consumers will receive extended warranties and payments of $2,000 per vehicle, according to the settlement terms.
Mercedes must also comply with new reporting requirements and reforms, including a prohibition on deceptive marketing or misrepresentations related to diesel vehicle emissions and compliance.
The settlement follows earlier multistate agreements involving other automakers, including a 2019 resolution with Fiat Chrysler and Robert Bosch GmbH, and a 2016 Volkswagen settlement that allocated $72.7 million to New Jersey.
New Jersey served on the Multistate Executive Committee overseeing the settlement, alongside Alabama, Connecticut, Delaware, Georgia, Maryland, New York, South Carolina and Texas.
