Indiana Joins $41.2M Multistate Settlement with Hyundai, Kia over Fuel Economy Claims

Indiana Will Receive $961,753.73 To Resolve Allegations Of State Consumer Protection Law Violations

INDIANAPOLIS – Indiana Attorney General Greg Zoeller announced a multistate settlement with Hyundai and Kia for $961,753.73 to Indiana that will resolve claims that the companies misrepresented the mileage and fuel economy ratings for some of their model year 2011, 2012 and 2013 vehicles.

 The District of Columbia and 33 states will each receive a portion of the $41.2 million settlement with Hyundai Motor Company, Hyundai Motor America, KIA Motors Corporation, Inc., and KIA Motors America, Inc. The settlement is the result of a multi-state investigation into the companies’ business practices. The participating states argued that the fuel economy estimate adjustments occurred at a time when gasoline prices in the United States were especially high.

 Indiana consumers who purchased the affected vehicles have already received over 3.5 million dollars in restitution from Hyundai and Kia to compensate for the lower-than advertised fuel economy on their vehicles.

 “As Attorney General, it is my responsibility to protect the consumer – all Hoosiers across the state – from misleading and misguiding business practices,” Zoeller said. “This settlement is a win for the consumer. I commend all who worked diligently to resolve this matter.”

 State and federal law set limits on emissions from vehicles sold in the United States. Before vehicles may be offered for sale in the country, auto manufacturers must conduct testing under mandatory protocols set by government regulators and use the resulting data from that testing to support applications demonstrating their vehicles’ conformity to those standards.

 In November 2012, Hyundai and Kia announced they were adjusting and restating the fuel economy ratings for certain model year 2011, 2012 and 2013 vehicles after it was revealed that the companies had overstated the fuel efficiency of certain vehicles.

 “The auto companies were taking advantage of high gas prices, praying on customers who were looking for fuel-efficient vehicles, by promoting inaccurate fuel economy ratings, which does not uphold the standards of Indiana’s consumer protection laws,” added Zoeller.

 The states alleged that Hyundai and Kia incorporated the inflated and inaccurate data into the estimated mileage ratings displayed on the window stickers of hundreds of thousands of cars in Indiana and across the country. It was also alleged that, in most instances, the auto companies tried to capitalize on the erroneous, inaccurate mileage estimates by making the misleading information the focal point of advertisements and other promotional campaigns.

 Zoeller would like to especially thank the hard work of Deputy Attorney General, Mark Snodgrass, for his dedication and hard work on this case.

 In addition to Indiana, Connecticut, Iowa, Illinois, Alabama, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, 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 make up the multistate group.