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FACT SHEET: Hyundai multistate settlement

FACT SHEET

HYUNDAI MULTISTATE SETTLEMENT

Overview

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Without admission of any wrongdoing or violations of any law and to avoid litigation, Hyundai has entered into an agreement to resolve the investigation of its 2012 restatement of fuel economy ratings by the following States and territories:

  1. Alabama
  2. Arizona
  3. Arkansas
  4. California
  5. Colorado
  6. Connecticut
  7. Delaware
  8. District of Columbia
  9. Florida
  10. Georgia
  11. Illinois
  12. Indiana
  13. Iowa
  14. Kansas
  15. Kentucky
  16. Maine
  17. Maryland
  18. Massachusetts
  19. Missouri
  20. Nebraska
  21. Nevada
  22. New Jersey
  23. New Mexico
  24. North Carolina
  25. Ohio
  26. Oklahoma
  27. Oregon
  28. Pennsylvania
  29. Rhode Island
  30. Tennessee
  31. Texas
  32. Virginia
  33. Washington
  34. Wisconsin

More than 75 percent of eligible Hyundai customers have been, or currently are being, reimbursed for the fuel economy ratings restatement.

With the multistate agreement in place, Hyundai has now fully remedied the 2012 restatement of its fuel economy ratings, paying a civil penalty to the federal government in 2014 and settling a related class action lawsuit in 2013, which last year was approved by the Court and remains subject to an ongoing appeal.

Hyundai has acted transparently, reimbursed affected customers and fully cooperated with the government – at both the state and federal level – throughout the course of their investigations.

Background

 

 

 

 

 

 

On November 2, 2012, Hyundai announced the voluntary adjustment of fuel economy ratings for approximately one-quarter of its 2011-13 model year vehicles, reducing their combined city/highway fuel economy by 1-2 miles per gallon, and relabeled affected vehicles still in dealer showrooms.  In order to compensate affected customers, Hyundai provided a lifetime reimbursement program to cover the additional fuel costs associated with the rating change plus a 15 percent premium in acknowledgement of the inconvenience.  The majority of customers affected by the ratings restatement enrolled in the automaker’s reimbursement program and are being compensated based on their actual mileage and the fuel costs for the region in which they live.  While customers responded favorably to the original reimbursement program, Hyundai through a class action settlement, which last year was approved by the Court and remains subject to an ongoing appeal, offered the option of a single lump sum cash payment for those customers who would rather not return to a dealership to have their mileage verified.  So, through either the one-time lump sum payment or the lifetime reimbursement program, customers are being made fully whole for Hyundai’s ratings restatement.

Also on November 2, 2012, Hyundai voluntarily contacted the National Association of Attorneys General Auto Working Group to disclose its fuel economy ratings restatement and related customer reimbursement programs.

Terms

 

 

Hyundai and Kia will:

  • Pay $41.2 million to the collection of States and territories listed above to settle their consumer protection claims and cover their investigative costs; and
  • Continue to comply with the provision that their advertising shall not misrepresent the estimated fuel economy of a new motor vehicle.
Allegations

Hyundai denies the factual and legal allegations contained in the states’ complaint (with the exception of jurisdictional facts) and maintains that it has been and continues to be in compliance with state consumer protection statutes.  Hyundai also denies that the advertising examples attached to the complaint were in any way illegal.  The attachments to the complaint were merely drafts of advertisements that ultimately ran with fully compliant disclaimers regarding the vehicles’ stated fuel economy.  The States chose to keep them as examples in the complaint despite the fact that Hyundai advised them that it would be erroneous to describe the attachments as final ads.