South Korea to penalize Mercedes-Benz for unlawful promotion of cars

Antitrust regulator of South Korea will impose a heavy fine on Mercedes-Benz worth US$16.87 million after the German automaker submitted false information on the gas emissions of its diesel-powered cars.

According to the Korea Fair Trade Commission (KFTC), Mercedes-Benz tampered with pollution mitigation devices installed in vehicles with an illegal software which allowed them to run efficiently at lower levels under normal driving conditions unlike during certification tests.

Unethically covered emission information and rigging suggests that in reality, these cars failed to pass the permissible emission levels despite efforts of Mercedes-Benz to defend by presenting falsified data.

Korean unit of Mercedes-Benz also deceitfully promoted its vehicle’s capabilities to sustain nitrogen oxide emissions at a minimum level advertising their adherence to Euro 6 emission standards.

KFTC mentioned that it makes sense to fine the country’s leading imported car sales operator for hampering reasonable purchase choices of consumers by attaching false and deceptive data to advertise the emission reduction capabilities, particularly following the Dieselgate controversy. 

The Korea Fair Trade Commission also discovered that, these misleading advertisements supported altogether 15 models, which it bragged about on its catalogue, magazines and press releases conducted for three years between 2013 to 2016.

Further the commission added that, despite the claims of Mercedes-Benz associated with ethical description of emission mitigation devices performance, the fact that it conveniently masked the intentional use of illegal software to boast the exceptional performance of its vehicles is unethical.

These unlawful and misleading practices threaten the fair trade system by hindering the decision making process of consumers.

Speculations have it that the regulator demanded for corrective steps or fined Audi-Volkswagen Korea last year along with Stellantis Korea, Porsche AG and Nissan Motor Corporation under similar rigging cases.

Source Credit: https://www.theedgemarkets.com/article/south-korea-fines-mercedesbenz-us1687-mil-over-emission-rigging