Delaware, and other states, reach settlement with Hyundai and Kia

A release from a representative of the Delaware Department of Justice states that Delaware is part of a multistate settlement with Hyundai and Kia concerning fuel economy claims.

According to the release, a group of 33 states and the District of Columbia have settled claims with automakers Hyundai and Kia. This settlement is regarding the fact that the companies misrepresented the mileage and fuel economy ratings for some of their model year 2011, 2012, and 2013 vehicles.

The Delaware DOJ says the states alleged that Hyundai and Kia incorporated inflated and inaccurate data into the estimated fuel mileage ratings displayed on the window stickers of hundreds of thousands of cars in Delaware and across the country, and prominently featured in a variety of advertisements and other promotional campaigns.

The states also alleged that these actions were probably made in order to mislead consumers and were material to consumers’ decisions to buy certain cars during a time of high gasoline prices.

The DOJ release says Delaware claimed that these actions constituted violations of Delaware’s Consumer Protection and Uniform Deceptive Trade Practices Acts.

People who bought affected Kia and Hyundai models – including about 3,700 sold in Delaware – were eligible for payment under class action lawsuits settled in 2013 for nearly $400 million in payments to owners across the country, with the roughly 600,000 people with Hyundai vehicles receiving an average of $353 each to reimburse for the extra gas purchased and 300,000 owners of affected Kia vehicles getting and average of $667 each.

The DOJ release explains that the multistate action, which was resolved with a settlement on Thursday, sought to further examine and address the companies’ practices.

Under the multistate settlement, the Hyundai Motor Company, Hyundai Motor America, Kia Motors Corporation, Inc., and Kia Motors America, Inc. will pay $41.2 million to the 33 states and the District of Columbia and Delaware’s Consumer Protection Fund will receive $626,674.14, which pays for Delaware’s work on deceptive trade practice matters and other consumer-oriented investigations and legal actions.

The settlement also provides injunctive relief forbidding these automakers from misrepresenting the estimated fuel economy of a new motor vehicle in the future.

In addition to Delaware, the multistate group – led by the states of Connecticut, Iowa and Illinois – includes Alabama, Arizona, Arkansas, California, Colorado, 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 and Wisconsin and the District of Columbia.

Categories: Business, Delaware, Local News, Money