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Last month, Volkswagen announced that it had reached a $14.7 billion settlement with the U.S. Government over the illegal software used on the 2.0L TDI engine. But before anything could be put into motion, it had to get the go-ahead from U.S. District Court Judge Charles Breyer. Yesterday at a hearing in San Francisco, Judge Breyer gave his preliminary approval on the settlement. This now means Volkswagen and Audi can start sending out official notices to owners explaining what happens next. Those hoping for buyback offers will need to wait a few more months. Breyer has scheduled a hearing on October 18th to hopefully give the final approval. Also, a lawyer for the Department of Justice told the court yesterday that Volkswagen would be proposing a new fix for the 3.0L TDI V6 within the next month. Source: Reuters, Volkswagen Press Release is on Page 2 VOLKSWAGEN ANNOUNCES PRELIMINARY APPROVAL OF 2.0L TDI SETTLEMENT PROGRAM IN THE UNITED STATES Wolfsburg / Herndon VA 2016-07-26 -- Volkswagen AG announced today that Judge Charles R. Breyer of the United States District Court for the Northern District of California has granted preliminary approval of the settlement agreement reached on June 28 with private plaintiffs represented by the Plaintiffs’ Steering Committee (PSC) to resolve civil claims regarding eligible Volkswagen and Audi 2.0L TDI vehicles in the United States. Individual class members will now receive notification of their rights and options under the agreement. Volkswagen will begin the settlement program immediately after the Court grants final approval to the class settlement, which is anticipated on October 18, 2016. Under the proposed settlement, eligible customers will have two choices: (1) they can sell back their vehicle to Volkswagen or terminate their lease without an early termination penalty, or, (2) keep their vehicle and receive a free emissions modification, if approved by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). Customers who select any of these options under the settlement will also receive a cash payment from Volkswagen. More information about the program can be found at www.VWCourtSettlement.com. Volkswagen appreciates the constructive engagement of all the parties, under the direction of Judge Breyer and with the active participation of Special Master Robert S. Mueller III, as the settlement approval process moves forward. The parties believe that the proposed settlement program will provide a fair, reasonable and adequate resolution for affected Volkswagen and Audi customers. Notes to Editors The following 2.0L TDI engine vehicles are included in the proposed 2.0L TDI settlement program: VW Beetle VW Golf VW Jetta VW Passat Audi A3 2013- 2015 2010-2015 2009-2015 2012-2015 2010-2013; 2015 Volkswagen continues to work closely with the EPA and CARB on an approved emissions modification for each of the 2.0L TDI engine vehicles listed above. Volkswagen is also trying to secure approval of a technical resolution for affected vehicles with a V6 3.0L TDI engine as quickly as possible. In addition to the proposed class settlement, Volkswagen has entered into a separate Consent Decree with the United States Department of Justice (acting on behalf of the EPA), CARB and the California Attorney General and a separate Partial Stipulated Order for Permanent Injunction and Monetary Judgment with the United States Federal Trade Commission regarding 2.0L TDI vehicles. Volkswagen has also resolved current and potential consumer protection claims of 44 U.S. states, the District of Columbia and Puerto Rico. The agreements are not an admission of liability by Volkswagen. By their terms, they are not intended to apply to or affect Volkswagen's obligations under the laws or regulations of any jurisdiction outside the United States. The company continues to work to resolve other outstanding legal matters in the United States. View full article -
Last month, Volkswagen announced that it had reached a $14.7 billion settlement with the U.S. Government over the illegal software used on the 2.0L TDI engine. But before anything could be put into motion, it had to get the go-ahead from U.S. District Court Judge Charles Breyer. Yesterday at a hearing in San Francisco, Judge Breyer gave his preliminary approval on the settlement. This now means Volkswagen and Audi can start sending out official notices to owners explaining what happens next. Those hoping for buyback offers will need to wait a few more months. Breyer has scheduled a hearing on October 18th to hopefully give the final approval. Also, a lawyer for the Department of Justice told the court yesterday that Volkswagen would be proposing a new fix for the 3.0L TDI V6 within the next month. Source: Reuters, Volkswagen Press Release is on Page 2 VOLKSWAGEN ANNOUNCES PRELIMINARY APPROVAL OF 2.0L TDI SETTLEMENT PROGRAM IN THE UNITED STATES Wolfsburg / Herndon VA 2016-07-26 -- Volkswagen AG announced today that Judge Charles R. Breyer of the United States District Court for the Northern District of California has granted preliminary approval of the settlement agreement reached on June 28 with private plaintiffs represented by the Plaintiffs’ Steering Committee (PSC) to resolve civil claims regarding eligible Volkswagen and Audi 2.0L TDI vehicles in the United States. Individual class members will now receive notification of their rights and options under the agreement. Volkswagen will begin the settlement program immediately after the Court grants final approval to the class settlement, which is anticipated on October 18, 2016. Under the proposed settlement, eligible customers will have two choices: (1) they can sell back their vehicle to Volkswagen or terminate their lease without an early termination penalty, or, (2) keep their vehicle and receive a free emissions modification, if approved by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). Customers who select any of these options under the settlement will also receive a cash payment from Volkswagen. More information about the program can be found at www.VWCourtSettlement.com. Volkswagen appreciates the constructive engagement of all the parties, under the direction of Judge Breyer and with the active participation of Special Master Robert S. Mueller III, as the settlement approval process moves forward. The parties believe that the proposed settlement program will provide a fair, reasonable and adequate resolution for affected Volkswagen and Audi customers. Notes to Editors The following 2.0L TDI engine vehicles are included in the proposed 2.0L TDI settlement program: VW Beetle VW Golf VW Jetta VW Passat Audi A3 2013- 2015 2010-2015 2009-2015 2012-2015 2010-2013; 2015 Volkswagen continues to work closely with the EPA and CARB on an approved emissions modification for each of the 2.0L TDI engine vehicles listed above. Volkswagen is also trying to secure approval of a technical resolution for affected vehicles with a V6 3.0L TDI engine as quickly as possible. In addition to the proposed class settlement, Volkswagen has entered into a separate Consent Decree with the United States Department of Justice (acting on behalf of the EPA), CARB and the California Attorney General and a separate Partial Stipulated Order for Permanent Injunction and Monetary Judgment with the United States Federal Trade Commission regarding 2.0L TDI vehicles. Volkswagen has also resolved current and potential consumer protection claims of 44 U.S. states, the District of Columbia and Puerto Rico. The agreements are not an admission of liability by Volkswagen. By their terms, they are not intended to apply to or affect Volkswagen's obligations under the laws or regulations of any jurisdiction outside the United States. The company continues to work to resolve other outstanding legal matters in the United States. -
Finally, some good news in terms of the Volkswagen diesel scandal. According to German newspaper Die Welt, Volkswagen has reached a deal with U.S. authorities over its cheating of EPA emission tests. Not much is known about the deal, but sources tell Die Welt that key part of the deal will see Volkswagen paying owners in the U.S. $5,000 in compensation. This deal will be presented tomorrow to U.S. District Judge Charles Breyer at a hearing. We'll likely learn more about the agreement and what else it entails. UPDATE: Reuters has learned from their sources that Volkswagen has agreed to buy back up to 500,000 2.0L diesel vehicles in the U.S. Volkswagen may also offer to repair the affected vehicles down the road if given the go-ahead by regulators. Stay tuned. Source: Die Welt, Reuters, (2) View full article
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Finally, some good news in terms of the Volkswagen diesel scandal. According to German newspaper Die Welt, Volkswagen has reached a deal with U.S. authorities over its cheating of EPA emission tests. Not much is known about the deal, but sources tell Die Welt that key part of the deal will see Volkswagen paying owners in the U.S. $5,000 in compensation. This deal will be presented tomorrow to U.S. District Judge Charles Breyer at a hearing. We'll likely learn more about the agreement and what else it entails. UPDATE: Reuters has learned from their sources that Volkswagen has agreed to buy back up to 500,000 2.0L diesel vehicles in the U.S. Volkswagen may also offer to repair the affected vehicles down the road if given the go-ahead by regulators. Stay tuned. Source: Die Welt, Reuters, (2) -
As the Diesel Emits: FTC Sues Volkswagen Over 'Clean Diesel' Ads
William Maley posted an article in Volkswagen
Another day, another lawsuit for Volkswagen over the diesel emission scandal. The U.S. Federal Trade Commission filed a lawsuit today in U.S. District Court in San Francisco against Volkswagen of America for false advertising. The suit says Volkswagen claimed in ads their diesel vehicles were clean, when actually they were polluting more thanks to illegal software. "For years Volkswagen's ads touted the company's 'Clean Diesel' cars even though it now appears Volkswagen rigged the cars with devices designed to defeat emissions tests," FTC Chairwoman Edith Ramirez said in a statement. The FTC also says in the filing that consumers in the U.S. suffered "billions of dollars in injury" as a result of the illegal software. For many years, Volkswagen promoted their "clean diesel" message through various mediums - print, television, and online ads. The ads were targeted at “environmentally-conscious” consumers. Automotive News says the FTC is seeking a court order to force Volkswagen to compensate U.S. consumers who bought a diesel vehicle and an injunction to prevent the automaker doing this again. Volkswagen spokeswoman Jeannine Ginivan tells Automotive News that the automaker has received the complaint and "continues to cooperate" with all U.S. regulators. Source: Automotive News (Subscription Required), Federal Trade Commission Press Release is on Page 2 FTC Charges Volkswagen Deceived Consumers with its "Clean Diesel" Campaign Seeks Compensation for Those Who Bought or Leased Affected VW and Audi Vehicles over Seven-Year Period March 29, 2016 The Federal Trade Commission has charged that Volkswagen Group of America, Inc. deceived consumers with the advertising campaign it used to promote its supposedly "clean diesel" VWs and Audis, which Volkswagen fitted with illegal emission defeat devices designed to mask high emissions during government tests. The FTC is seeking a court order requiring Volkswagen to compensate American consumers who bought or leased an affected vehicle between late 2008 and late 2015, as well as an injunction to prevent Volkswagen from engaging in this type of conduct again. In a complaint filed in federal court, the FTC alleges that during this seven-year period Volkswagen deceived consumers by selling or leasing more than 550,000 diesel cars based on false claims that the cars were low-emission, environmentally friendly, met emissions standards and would maintain a high resale value. The cars sold for an average price of approximately $28,000. "For years Volkswagen's ads touted the company's 'Clean Diesel' cars even though it now appears Volkswagen rigged the cars with devices designed to defeat emissions tests," said FTC Chairwoman Edith Ramirez. "Our lawsuit seeks compensation for the consumers who bought affected cars based on Volkswagen's deceptive and unfair practices." According to the FTC's complaint, Volkswagen promoted its supposedly "clean" cars through a high-profile marketing campaign that included Super Bowl ads, online social media campaigns, and print advertising, often targeting "environmentally-conscious" consumers. For example, Volkswagen promotional materials repeatedly claimed that its "Clean Diesel" vehicles have low emissions, including that they reduce nitrogen oxides (NOx) emissions by 90 percent and have fewer such emissions than gasoline cars. In fact, the FTC's complaint states that they emit up to 4,000 percent more than the legal limit of NOx — a dangerous pollutant that contributes to environmental harms and respiratory ailments. The complaint alleges that Volkswagen also claimed that "Clean Diesel" vehicles met "stringent emission requirements," were "50-state compliant," and would maintain a high resale value. Yet, according to the FTC's complaint, these claims were also false because without the illegally installed software, the "Clean Diesel" vehicles would not have passed federal emissions standards and the hidden defeat devices will significantly reduce the vehicles' resale value. The FTC also charged that Volkswagen provided the means and instrumentalities for others to deceive consumers, and that installing the emissions defeat devices was an unfair practice. The affected vehicles include 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, and Touareg SUVs, as well as TDI Audi models. The suggested sale prices for the affected vehicles ranged from approximately $22,000 for the least-expensive Volkswagen model with a 2.0-liter engine to approximately $125,000 for the most-expensive Audi model with 3.0-liter engine. The Commission vote authorizing the staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Northern District of California, San Francisco Division. NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court. The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook (link is external), follow us on Twitter (link is external), read our blogs and subscribe to press releases for the latest FTC news and resources. -
Another day, another lawsuit for Volkswagen over the diesel emission scandal. The U.S. Federal Trade Commission filed a lawsuit today in U.S. District Court in San Francisco against Volkswagen of America for false advertising. The suit says Volkswagen claimed in ads their diesel vehicles were clean, when actually they were polluting more thanks to illegal software. "For years Volkswagen's ads touted the company's 'Clean Diesel' cars even though it now appears Volkswagen rigged the cars with devices designed to defeat emissions tests," FTC Chairwoman Edith Ramirez said in a statement. The FTC also says in the filing that consumers in the U.S. suffered "billions of dollars in injury" as a result of the illegal software. For many years, Volkswagen promoted their "clean diesel" message through various mediums - print, television, and online ads. The ads were targeted at “environmentally-conscious” consumers. Automotive News says the FTC is seeking a court order to force Volkswagen to compensate U.S. consumers who bought a diesel vehicle and an injunction to prevent the automaker doing this again. Volkswagen spokeswoman Jeannine Ginivan tells Automotive News that the automaker has received the complaint and "continues to cooperate" with all U.S. regulators. Source: Automotive News (Subscription Required), Federal Trade Commission Press Release is on Page 2 FTC Charges Volkswagen Deceived Consumers with its "Clean Diesel" Campaign Seeks Compensation for Those Who Bought or Leased Affected VW and Audi Vehicles over Seven-Year Period March 29, 2016 The Federal Trade Commission has charged that Volkswagen Group of America, Inc. deceived consumers with the advertising campaign it used to promote its supposedly "clean diesel" VWs and Audis, which Volkswagen fitted with illegal emission defeat devices designed to mask high emissions during government tests. The FTC is seeking a court order requiring Volkswagen to compensate American consumers who bought or leased an affected vehicle between late 2008 and late 2015, as well as an injunction to prevent Volkswagen from engaging in this type of conduct again. In a complaint filed in federal court, the FTC alleges that during this seven-year period Volkswagen deceived consumers by selling or leasing more than 550,000 diesel cars based on false claims that the cars were low-emission, environmentally friendly, met emissions standards and would maintain a high resale value. The cars sold for an average price of approximately $28,000. "For years Volkswagen's ads touted the company's 'Clean Diesel' cars even though it now appears Volkswagen rigged the cars with devices designed to defeat emissions tests," said FTC Chairwoman Edith Ramirez. "Our lawsuit seeks compensation for the consumers who bought affected cars based on Volkswagen's deceptive and unfair practices." According to the FTC's complaint, Volkswagen promoted its supposedly "clean" cars through a high-profile marketing campaign that included Super Bowl ads, online social media campaigns, and print advertising, often targeting "environmentally-conscious" consumers. For example, Volkswagen promotional materials repeatedly claimed that its "Clean Diesel" vehicles have low emissions, including that they reduce nitrogen oxides (NOx) emissions by 90 percent and have fewer such emissions than gasoline cars. In fact, the FTC's complaint states that they emit up to 4,000 percent more than the legal limit of NOx — a dangerous pollutant that contributes to environmental harms and respiratory ailments. The complaint alleges that Volkswagen also claimed that "Clean Diesel" vehicles met "stringent emission requirements," were "50-state compliant," and would maintain a high resale value. Yet, according to the FTC's complaint, these claims were also false because without the illegally installed software, the "Clean Diesel" vehicles would not have passed federal emissions standards and the hidden defeat devices will significantly reduce the vehicles' resale value. The FTC also charged that Volkswagen provided the means and instrumentalities for others to deceive consumers, and that installing the emissions defeat devices was an unfair practice. The affected vehicles include 2009 through 2015 Volkswagen TDI diesel models of Jettas, Passats, and Touareg SUVs, as well as TDI Audi models. The suggested sale prices for the affected vehicles ranged from approximately $22,000 for the least-expensive Volkswagen model with a 2.0-liter engine to approximately $125,000 for the most-expensive Audi model with 3.0-liter engine. The Commission vote authorizing the staff to file the complaint was 4-0. The complaint was filed in the U.S. District Court for the Northern District of California, San Francisco Division. NOTE: The Commission files a complaint when it has "reason to believe" that the law has been or is being violated and it appears to the Commission that a proceeding is in the public interest. The case will be decided by the court. The Federal Trade Commission works to promote competition, and protect and educate consumers. You can learn more about consumer topics and file a consumer complaint online or by calling 1-877-FTC-HELP (382-4357). Like the FTC on Facebook (link is external), follow us on Twitter (link is external), read our blogs and subscribe to press releases for the latest FTC news and resources. View full article
