By SPEAKIN’ OUT NEWS
Alabama will receive a share of a $149 million multi-state settlement with Mercedes-Benz after state attorneys general found the automaker used illegal emissions software in certain diesel vehicles sold nationwide.
Attorney General Steve Marshall joined attorneys general from across the country in announcing the settlement with Mercedes-Benz USA and Mercedes-Benz Group AG, resolving allegations that the company violated state consumer protection laws through deceptive trade practices.
According to the settlement, Mercedes installed emissions “defeat devices” in diesel vehicles that allowed them to pass regulatory emissions testing while releasing nitrogen oxides at levels far above legal limits during normal driving conditions. Despite this, the vehicles were marketed as environmentally friendly.
State officials allege that from 2008 through 2016, Mercedes marketed, sold, or leased approximately 211,000 diesel passenger cars and vans equipped with the illegal software across the United States.
“This settlement sends a clear message to consumers: they deserve honesty, and deceptive marketing won’t be tolerated,” Marshall said in a statement.
Under the agreement, Mercedes will pay $120 million to participating states once the settlement takes effect. An additional $29.7 million is conditionally suspended and may be waived if the company fulfills the requirements of a comprehensive consumer relief program.
That program applies to an estimated 39,565 affected vehicles nationwide, including nearly 12,000 vehicles in Alabama, that had not been repaired or permanently removed from the road as of Aug. 1, 2023. Mercedes is required to install approved emissions modification software, provide an extended warranty, and pay $2,000 per vehicle to eligible owners who receive the repair.
Beyond financial penalties, the settlement mandates changes to Mercedes’ business practices. The company is prohibited from engaging in unfair or deceptive marketing related to diesel emissions and must comply with ongoing reporting requirements.
The agreement follows earlier emissions settlements involving other automakers, including Volkswagen, Fiat Chrysler, and Robert Bosch GmbH. Mercedes previously paid approximately $1.5 billion in 2020 to resolve related federal and state claims.
The multi-state investigation was led by attorneys general from Connecticut, Delaware, and Maryland, with Alabama among the states that assisted in the case.