AG Yost announces $150 million settlement with Mercedes-Benz over illegal emissions
Ohio AG's Office
Ohio Attorney General Dave Yost this week announced a nearly $150 million multi-state settlement with Mercedes-Benz USA and its parent company, Mercedes-Benz Group AG, for misleading consumers and violating environmental laws.
A coalition of 50 attorneys general found that Mercedes sold diesel vehicles with hidden software designed to cheat emissions tests, allowing the vehicles to release far more pollution during everyday driving than the law allows.
“Mercedes took a bypass around the law at the expense of consumers and the air we all breathe,” Yost said. “It’s not that hard to follow the rules.”
From 2008 through 2016, Mercedes sold more than 211,000 diesel cars and vans nationwide, including more than 7,600 vehicles in Ohio, equipped with illegal software known as “defeat devices.” These devices made the vehicles appear clean during emissions testing but turned off pollution controls during normal driving.
As a result, the vehicles released excessive levels of nitrogen oxide, a harmful pollutant that contributes to smog and can worsen asthma and other breathing problems.
Mercedes allegedly used the software to improve performance and fuel efficiency while hiding the truth from regulators and the public. At the same time, the company advertised the vehicles as environmentally friendly and compliant with emissions laws.
Under the settlement:
• Mercedes will pay $120 million immediately to the states.
• An additional $29.6 million will be waived if the company completes a consumer relief program.
• Ohio will receive more than $2.1 million.
As part of the consumer relief program, Mercedes must:
• Fix or permanently remove affected vehicles from the road at no cost to owners.
• Provide an extended warranty after repairs.
• Pay $2,000 to each eligible vehicle owner.
The settlement also requires Mercedes to change its business practices, including a ban on misleading marketing and false claims about emissions compliance. The company must report regularly to ensure it follows the agreement.
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