Products Liability Law Daily Wrap Up, NHTSA NEWS—AWARDS—NHTSA awards whistleblower over $24M for information on Hyundai, Kia violations of federal law, (Nov 9, 2021)

By Susan Lasser, J.D.

The agency is permitted to award a whistleblower up to 30 percent of monies collected from an agency safety action to which the whistleblower contributed information and that resulted in penalties of over one million dollars.

In an agency first, the National Highway Traffic Safety Administration (NHTSA) will award more than $24 million to a whistleblower who provided information to NHTSA relating to violations of the National Traffic and Motor Vehicle Safety Act of 1966 (Safety Act) by Hyundai Motor America (Hyundai) and Kia Motors America (Kia). The award is the maximum percentage allowed by law of the $81 million in cash collected by the United States and is the first award NHTSA has issued under its authority, according to an agency news release (NHTSA News, November 9, 2021).

In November 2020, NHTSA issued consent orders reflecting the agency’s assessment that both Hyundai and Kia conducted untimely recalls of over 1.6 million vehicles equipped with Theta II engines and inaccurately reported essential information to NHTSA about the nature of serious defects in the engines [see Products Liability Law Daily’s November 30, 2020 analysis]. The combined penalties in the consent orders totaled $210 million-$81 million of which was paid in cash to the United States government. By statute, NHTSA may award a maximum of 30 percent of collected monies to a whistleblower found to have contributed significant information to an action that results in penalties of more than one million dollars.

Whistleblower program. The release noted that whistleblowers are protected by law and that NHTSA is in the process of drafting regulations for its whistleblower program. Whistleblowers may receive awards without a final rule, however. Potential whistleblowers may provide information to the agency by contacting NHTSAWhistleblower@dot.gov or through the agency’s hotline at 888-327-4236. In addition, NHTSA launched a webpage earlier this year to assist whistleblowers in determining what information they should provide and how they should go about doing so.

NHTSA said that it took this action to make the whistleblower program easier to access in “recognition of the important role whistleblowers can play in enhancing the safety of the nation’s roadways.” The agency invites information from whistleblowers on a variety of topics, including potential vehicle safety defects, noncompliance with the Federal Motor Vehicle Safety Standards, and violations of the Safety Act. Such information can lead to formal actions including investigations, recalls, or a civil penalty enforcement action. “Whistleblowers play a crucial role in bringing information to NHTSA about serious safety problems that are hidden from the agency,” said Dr. Steven Cliff, NHTSA’s Deputy Administrator. “This information is critical to public safety and we are committed to rewarding those who bring information to us.”

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