Little Rock, Arkansas – Attorney General Tim Griffin announced a major settlement of nearly $150 million with Mercedes-Benz USA, LLC, and Mercedes-Benz Group AG, resolving allegations that the automaker violated state laws prohibiting unfair or deceptive trade practices. The announcement was made in conjunction with a coalition of 50 attorneys general from across the United States.
The settlement stems from accusations that Mercedes-Benz sold, leased, and marketed vehicles equipped with illegal and undisclosed emissions defeat devices, designed to bypass emissions testing standards. According to the attorneys general, these devices allowed diesel vehicles to emit far higher levels of nitrogen oxide (NOx) than permitted under the law, while being falsely represented as environmentally compliant.
“Protecting Arkansas consumers from deceptive trade practices is a top priority for my office,” Griffin said. “Mercedes-Benz USA, LLC and Mercedes-Benz Group AG falsely marketed their vehicles as environmentally compliant while secretly installing emissions defeat devices. This settlement ensures they take responsibility by compensating consumers and implementing critical reform.”
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The settlement targets conduct that allegedly occurred between 2008 and 2016. During this period, Mercedes is accused of manufacturing, marketing, advertising, and distributing more than 211,000 diesel passenger cars and vans nationwide equipped with the defeat devices. The automaker allegedly installed the devices to achieve performance goals such as increased fuel efficiency and reduced maintenance costs, while concealing their existence from both regulators and the public.
According to state officials, Mercedes intentionally misled consumers by promoting these vehicles as “environmentally friendly,” even though the defeat devices allowed the cars to exceed legal emissions limits. The practice drew scrutiny from regulators and consumer protection advocates, leading to a coordinated investigation by multiple states.
Under the terms of the settlement, Mercedes-Benz USA, LLC and Mercedes-Benz Group AG will pay $120 million to the states immediately. An additional $29,673,750 will be suspended and may be waived, contingent on the successful completion of a comprehensive consumer relief program designed to compensate affected vehicle owners. Arkansas will receive $250,000 from the settlement, covering approximately 704 vehicles sold in the state that were equipped with the defeat devices.
The settlement was spearheaded by the attorneys general of Alabama, Connecticut, Delaware, Georgia, Maryland, New Jersey, New York, South Carolina, and Texas, with participation from a wide array of other states and territories including Alaska, Arkansas, Colorado, the District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and Puerto Rico.
The settlement represents one of the largest coordinated consumer protection actions targeting automakers accused of emissions fraud. State officials emphasized that it not only holds Mercedes accountable financially but also mandates reforms in how the company markets and tests its vehicles to prevent similar misconduct in the future.
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For Arkansas residents affected by the recall, state officials said the settlement ensures they will receive compensation and that consumer protection measures will be strengthened to prevent further deception. Officials also noted that ongoing oversight will monitor compliance with the relief program and reform requirements.
“This settlement sends a clear message to corporations that misleading consumers and violating environmental regulations will not be tolerated,” Griffin said. “It protects both our citizens and the environment, and ensures that companies like Mercedes-Benz are held accountable for their actions.”
The case marks a significant victory for state attorneys general and a warning to automakers nationwide that deceptive emissions practices carry serious consequences. As the consumer relief program rolls out, affected vehicle owners are encouraged to follow guidance from their state officials to claim compensation and ensure compliance with the settlement terms.
