(RTTNews) – The Federal Trade Commission or FTC said German car manufacturers Volkswagen and Porsche have refunded more than $9.5 billion since 2016 to buyers, who have been deceived through the “clean diesel” advertising campaign.
In a filing with federal court, the regulator said the payment made under his orders as a result of misleading advertising through corporations about Volkswagens and Audis supplied with illegal emission neutralization devices.
In March 2016, the FTC filed a complaint in federal court alleging that Volkswagen’s seven-year advertising crusade was based on false statements that the cars were low-emission, environmentally friendly, met emissions criteria and maintained a higher resale value. However, the cars were supplied with illegal emission neutralization devices designed to mask the highest government emissions tests.
The matter was resolved and the corporations had to make invoices to consumers that included reimbursement of the overall retail price of their vehicles, plus all other losses incurred as a result of the deception.
The customers could choose to return their vehicle to VW or Porsche in exchange for compensation, or to get the car modified to comply with clean-air rules. More than 86 percent chose to return their car through a buyback or early lease termination, the FTC noted.
In May, a higher court in Germany ordered Volkswagen to re-purchase diesel cars delivered to consumers with faulty emission systems.
The emissions scandal, which dates back to 2015, led to the ban on diesel cars with deception software in the United States. However, the company allowed the software to be updated in Europe.