Hyundai and Kia Settle Inflated Fuel Efficiency Claims Allegations for $350M

By on November 7, 2014

The Environmental Protection Agency (EPA) and Department of Justice (DOJ) announced that Korean car makers Hyundai and Kia agreed to pay a $100 million civil penalty to resolve allegations of exaggerated fuel economy claims in violation of the Clean Air Act.

Pursuant to the settlement, the automakers will also spend $50 million to create an independent fuel economy certification group and forfeit 4.75 million greenhouse gas emission credits which are estimated to be worth more than $200 million.

“This unprecedented resolution with Hyundai and Kia underscores the Justice Department’s firm commitment to safeguarding American consumers, ensuring fairness in every marketplace, protecting the environment, and relentlessly pursuing companies that make misrepresentations and violate the law,” said Attorney General Eric Holder.

“This type of conduct quite simply will not be tolerated. And the Justice Department will never rest or waver in our determination to take action against any company that engages in such activities  whenever and wherever they are uncovered.”

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