Antitrust Law Daily Wrap Up, CONSUMER PROTECTION NEWS: Fuel Economy Misrepresentation Lawsuit Settled , (Feb 27, 2013)

By Jody Coultas, J.D.

Hyundai Motor America has agreed to settle a California consumer protection class action alleging the manufacturers misrepresented the fuel economy ratings for some of its vehicles. 38 separate lawsuits concerning the marketing, sale and advertising of the mileage estimates of Hyundai vehicles had been transferred and centralized in the federal district court in Los Angeles.

Vehicle purchasers in multiple states filed consumer protection law class action claims against Hyundai and affiliate Kia Motors America seeking to represent all consumers who own or lease Hyundai and Kia vehicles whose EPA fuel economy ratings were less than the fuel economy rating produced by the applicable federal test in that model’s year.

Hyundai admitted last November that it overstated the fuel economy estimates, after tests by the Environmental Protection Agency found discrepancies. In an apology, Hyundai blamed flawed internal testing procedures and lowered the fuel economy ratings for most of their models. The rates will be lowered from between one to five miles per gallon.

The financial terms of the tentative agreement were not disclosed, but consumers who purchased vehicles with overstated fuel economy ratings may take a lump sum payment, or continue with a debit card reimbursement plan. Payouts will vary depending on the extent of the mile-per-gallon overstatement.

News: ConsumerProtection StateUnfairTradePractices