New York Attorney General Letitia James, along with a coalition of 50 other state attorneys general, entered into a settlement with Mercedes-Benz USA concerning alleged emissions standards violations and consumer disclosures. As part of the agreement, Mercedes-Benz USA will pay nearly $150 million to the participating states.
According to a press release from the Attorney General’s office, an investigation determined that Mercedes-Benz used software that altered vehicle performance during emissions testing, resulting in lower reported emissions levels. During normal operation, the vehicles were found to emit pollutants at levels significantly higher than legal limits. Under the settlement, more than $13.5 million will be allocated to New York for air pollution mitigation, and Mercedes-Benz will also pay $120 million to the coalition of participating states.
Attorney General James stated that Mercedes-Benz marketed certain vehicles as environmentally friendly, while the investigation found emissions levels higher than those representations. She said the settlement allocates funding for environmental protection efforts in New York and addresses emissions-related practices by the company. The agreement also requires Mercedes-Benz to provide a $2,000 payment to eligible vehicle owners and lessees whose vehicles receive emissions-related modifications, in addition to payments made to the states.
The investigation found that the conduct had implications for both environmental compliance and consumer protection. The vehicles were marketed as having low emissions, while the investigation concluded that their actual performance did not align with those representations. Under the settlement, Mercedes-Benz is required to provide compensation and implement measures intended to ensure compliance with emissions regulations and accuracy in future advertising. The agreement also includes a suspended penalty of $29,673,750, which will be reduced by $750 for each affected vehicle that Mercedes repairs or replaces.
The case involved coordination with attorneys general from several states, including Alabama, Connecticut, Delaware, Georgia, Maryland, New Jersey, South Carolina, and Texas, and was managed by the Environmental Protection Bureau of New York. In addition to financial payments and corrective actions, the settlement addresses compliance with environmental regulations applicable to the automotive industry.
