S. Korea's FTC delivers $17 mn fine on Mercedes Benz for misleading emission ad

[Source: Fair Trade Commission]

South Korea’s antitrust regulator on Sunday announced it has imposed a fine of over 20 billion won ($16.7 mn) on German luxury carmaker Mercedes-Benz for false information on gas emissions of diesel cars in its ads.

According to the Fair Trade Commission (FTC), it has fined total 20.2 billion on Mercedes-Benz Korea and its German headquarters Mercedes-Benz Group AG for violating the country’s labeling and advertising act. It is the biggest fine imposed by the antitrust agency to five automakers since last year under same charge.

According to the FTC, 15 of Mercedes-Benz’ diesel models were installed with illegal software that reduces performance of selective catalytic reduction (SCR) system that reduces carbon emissions in normal driving environment.

SCR sprays urea solution to exhaust gas to transform nitrogen oxide to nitrogen and water. In normal driving environment, however, SCR’s urea injection quantity sharply reduced due to illegal software leading to 5.8 to 14 times more nitrogen oxide discharge than accepted level.

[Source: Fair Trade Commission]

Mercedes-Benz, however, advertised in magazines, catalogues, brochures, and press releases between August 2013 and December 2016 that its diesel cars reduce up to 90 percent of nitrogen oxide and have performance that satisfy Euro6 emissions standard.

Mercedes-Benz refuted by claiming that a drive that goes on for more than 30 minutes cannot be seen as being in normal driving environment as 90 percent of driving by local vehicles end within 30 minutes.

The FTC dismissed the claim, arguing more than 4 million cases daily involve over 30 minute driving.

The fine comes after the FTC launched investigation into five import carmakers and imposed 831 million won on Audi and Volkswagen in September last year and 230 million on Stellantis Korea that sell Fiat and Jeep cars. It also fined Nissan Korea 173 million won and gave correction order to Porsche Korea.

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