Attorney General Charity Clark announced that Vermont will receive $295,000 as part of a multistate settlement with Mercedes-Benz USA and Daimler AG over allegations of emissions fraud. The settlement, joined by 49 other attorneys general, addresses claims that the companies violated state laws by marketing and selling vehicles equipped with illegal emissions defeat devices.
According to the coalition of states, from 2008 to 2016 Mercedes manufactured and sold more than 211,000 diesel passenger cars and vans nationwide. These vehicles allegedly contained software designed to optimize emission controls during official tests but reduce their effectiveness under normal driving conditions. This practice allowed the vehicles to emit nitrogen oxides (NOx) above legal limits, contributing to air pollution.
“Vermont consumers often make choices based on products’ environmental impacts, and when companies like Mercedes-Benz and Daimler misrepresent the environmental harms of their products, consumers are robbed of this ability,” said Attorney General Clark. “It’s important to me that we hold these companies accountable. Mercedes-Benz and Daimler will take corrective action, provide a free fix for their customers, and pay for the environmental harms their deception has caused.”
The states allege that Mercedes promoted these vehicles as environmentally friendly while concealing the existence of defeat devices from regulators and the public. The settlement requires Mercedes-Benz USA and Daimler AG to pay $120 million to participating states initially. An additional amount may be waived if a consumer relief program is completed.
The consumer relief program targets about 39,565 affected vehicles in the United States that had not been repaired or removed from roads by August 1, 2023. Under this program, Mercedes must cover costs for installing approved emission modification software on each vehicle. Participating consumers will also receive an extended warranty and a payment of $2,000 per vehicle.
Eligible consumers will be contacted directly via first-class mail regarding their participation in the emissions installation program or incentive payments.
Other states joining Vermont in this settlement include Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico,New York, North Carolina,North Carolina, North Dakota,North Dakota, Ohio,Ohio, Oklahoma,Oklahoma, Oregon,Oregon, Pennsylvania,Pennsylvania, Puerto Rico,Puerto Rico, Rhode Island,Rhode Island, South Dakota,South Dakota, South Carolina,South Carolina, Tennessee,Tennessee, Texas,Texas, Utah,Utah, Virginia,Virginia, Washington,Washington, West Virginia,West Virginia, WisconsinWisconsin and Wyoming.