Companies Will Pay Illinois More Than $2.2 Million For Deceiving Consumers into Buying Cars with Erroneous Mileage Estimates
CHICAGO, IL – Illinois Attorney General Lisa Madigan announced a $41 million settlement with automakers Hyundai and Kia to resolve claims that the companies misrepresented the mileage and fuel economy ratings for some of their model year 2011, 2012 and 2013 vehicles.
The settlement resolves a multistate investigation by Madigan, 32 states and the District of Columbia that alleged the companies incorporated inflated and inaccurate fuel economy data into the estimated mileage ratings displayed on window stickers and in advertisements and promotional campaigns of more than 40,000 cars in Illinois and more than 750,000 cars across the country.
Madigan and the states alleged the companies sought to capitalize on the erroneous mileage estimates, and as a result, misled consumers, who considered the mileage per gallon estimates in purchasing the vehicles, particularly at a time of peak gasoline prices. Illinois will receive $2.2 million from the settlement.
“These car companies deceived consumers into thinking they were purchasing vehicles that would be more fuel efficient than they really were,” Madigan said.
The multistate group – led by Illinois, Connecticut and Iowa – also includes Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Indiana, Kansas, Kentucky, Maryland, Maine, Massachusetts, Missouri, Nebraska, New Jersey, New Mexico, Nevada, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington, Wisconsin and the District of Columbia.
The companies began providing restitution in 2013 directly to impacted consumers. To date, each company has offered more than $2.5 million in restitution to consumers with the affected vehicles. A class action settlement may provide additional restitution to consumers. To learn more, consumers can call Hyundai at 877-277-0012 or Kia at 855-912-5648.
Assistant Attorneys General Cassandra Halm and Greg Grzeskiewicz handled the settlement for Madigan’s Consumer Protection Bureau.