Volkswagen Targeted by Federal Trade Commission Lawsuit

Steph Willems
by Steph Willems

It wasn’t so clean, was it?

The Federal Trade Commission filed suit against Volkswagen on March 29, claiming the automaker’s “Clean Diesel” ad campaign was a deception that tricked buyers into purchasing its supposedly eco-friendly vehicles.

By filing the complaint against Volkswagen, the FTC (which can’t levy fines) would be able to seek compensation for buyers via a federal court order.

“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 in a statement.

“Our lawsuit seeks compensation for the consumers who bought affected cars based on Volkswagen’s deceptive and unfair practices.”

The lawsuit is the latest in a biblically long list of legal action being taken against the company in the wake of the scandal.

The court order concerns diesel Volkswagens sold in the U.S. between late 2008 and late 2015, a total of nearly 600,000 vehicles.

According to the FTC, the now-notorious “Clean Diesel” ad campaign pushed vehicles by claiming they were low emission, environmentally friendly and would hold a high resale value.

In its promotional materials, Volkswagen claimed that its diesel engines reduced nitrogen oxide (NOx) emissions by 90 percent, when in reality they belched them out at up to 4,000 percent of the legal limit. The automaker’s claim of being compliant with emissions regulations in all states also figures into the FTC’s lawsuit.

The vote that led the FTC to file suit was a unanimous one.

Volkswagen continues to hunt for an acceptable fix for all of the defeat device-rigged diesels, and was recently allowed an extension to a court-ordered deadline. It has until April 21 to unveil a plan on how it will fix, or possibly buy back, the recalled vehicles.

Steph Willems
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  • SCE to AUX SCE to AUX on Mar 29, 2016

    "biblically long list of legal action" -- nice phrase As I mentioned in another thread on this subject, I've become convinced they're merely spending their 1-month hiatus getting a legal/financial settlement in order. They are probably communicating through back channels to assure it is approved when presented. There won't be a technical fix. And I don't think CA will let these cars stay on the road.

    • Tedward Tedward on Mar 29, 2016

      If that looks like it's going to happen (refusing registrations) I'm going to buy stock in Orville redenbacher. It will be a sh!t show on a scale we have rarely seen. It all depends on how politically insulated the regulators feel, and on how much involvement the elected politicians have on their management. Be prepared for an outright declaration of war by nada.

  • Anonymous Anonymous on Mar 29, 2016

    This angle I hadn't thought about before. To date I've only considered making owners (including dealers) whole again. I wonder how many countries have laws concerning deceptive advertising? Volkswagen is in more trouble than I thought, and I thought they were in enough trouble to bankrupt before this suit. Consumers should still be able to bring individual suits regardless of what the FTC does. Nice correct usage of caps in the word "biblically." Too often mis-capitalized, it is only used with a capital letter when makng direct reference to the Biblical document itself.

  • Alan Years ago Jack Baruth held a "competition" for a piece from the B&B on the oddest pickup story (or something like that). I think 5 people were awarded the prizes.I never received mine, something about being in Australia. If TTAC is global how do you offer prizes to those overseas or are we omitted on the sly from competing?In the end I lost significant respect for Baruth.
  • Alan My view is there are good vehicles from most manufacturers that are worth looking at second hand.I can tell you I don't recommend anything from the Chrysler/Jeep/Fiat/etc gene pool. Toyotas are overly expensive second hand for what they offer, but they seem to be reliable enough.I have a friend who swears by secondhand Subarus and so far he seems to not have had too many issue.As Lou stated many utes, pickups and real SUVs (4x4) seem quite good.
  • 28-Cars-Later So is there some kind of undiagnosed disease where every rando thinks their POS is actually valuable?83K miles Ok.new valve cover gasket.Eh, it happens with age. spark plugsOkay, we probably had to be kewl and put in aftermarket iridium plugs, because EVO.new catalytic converterUh, yeah that's bad at 80Kish. Auto tranny failing. From the ad: the SST fails in one of the following ways:Clutch slip has turned into; multiple codes being thrown, shifting a gear or 2 in manual mode (2-3 or 2-4), and limp mode.Codes include: P2733 P2809 P183D P1871Ok that's really bad. So between this and the cat it suggests to me someone jacked up the car real good hooning it, because EVO, and since its not a Toyota it doesn't respond well to hard abuse over time.$20,000, what? Pesos? Zimbabwe Dollars?Try $2,000 USD pal. You're fracked dude, park it in da hood and leave the keys in it.BONUS: Comment in the ad: GLWS but I highly doubt you get any action on this car what so ever at that price with the SST on its way out. That trans can be $10k + to repair.
  • 28-Cars-Later Actually Honda seems to have a brilliant mid to long term strategy which I can sum up in one word: tariffs.-BEV sales wane in the US, however they will sell in Europe (and sales will probably increase in Canada depending on how their government proceeds). -The EU Politburo and Canada concluded a trade treaty in 2017, and as of 2024 99% of all tariffs have been eliminated.-Trump in 2018 threatened a 25% tariff on European imported cars in the US and such rhetoric would likely come again should there be an actual election. -By building in Canada, product can still be sold in the US tariff free though USMCA/NAFTA II but it should allow Honda tariff free access to European markets.-However if the product were built in Marysville it could end up subject to tit-for-tat tariff depending on which junta is running the US in 2025. -Profitability on BEV has already been a variable to put it mildly, but to take on a 25% tariff to all of your product effectively shuts you out of that market.
  • Lou_BC Actuality a very reasonable question.
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