ED Penalty for false advertising

Mercedes-Benz also slammed for false emissions claims

The Korean Fair Trade Commission (KFTC) has decided to slap a 20.2 billion won ($16.8 million) fine on Mercedes-Benz, the No. 1 seller of imported vehicles, for having misled consumers with false advertisements. It said Monday that the German automaker ran ads deceiving consumers about its diesel cars' performance in reducing emissions. According to the KFTC, Mercedes-Benz tampered with pollution mitigation devices by installing software in its cars that makes the devices perform at lower levels in ordinary driving conditions than during certification tests.

The Korean offshoot of the global carmaker then advertised that its cars could “reduce nitrogen oxide emissions by up to 90 percent.” It also attached signs to its vehicles, saying that they were “produced in accordance with the regulations of the Air Conservation Act” and “guarantee reduced emissions for 10 years.” Korean consumers are upset that Mercedes-Benz, the iconic luxury carmaker, has contaminated the air using a cheap trick. Nevertheless, the company remains silent about the commission's move, saying, “There is no position yet to disclose because we have not received a resolution from the KFTC.”

However, if the commission's announcement proves true, the company should take responsibility legally, not to mention apologize to consumers. Equally shocking is the timing of the false advertisements. After Audi and Volkswagen were found to have cheated on U.S. emissions tests in September 2015, the Korean government uncovered similar cases and ordered corrective steps two months later. Nevertheless, Mercedes-Benz ran ads until December 2016 that its vehicles reduced 90 percent of nitrogen oxide emissions, and attached signs until November 2018 saying they met air pollution standards.

If the KFTC is right, Mercedes-Benz was laughing at the efforts of the Korean government and people to reduce nitrogen oxide emissions. Korea has made nitrogen oxide reduction devices mandatory in diesel cars since 2016. Drivers who must use diesel exhaust fluid ― also known as urea water ― in this device, had a rough time last October after China restricted the export of the fluid. However, in the case of Mercedes-Benz's diesel cars, using urea water was useless because the company's manipulated software in the cars drastically reduced the injection of the fluid and emitted nitrogen oxides 5.8-14 times more than the acceptable standards. The company must provide answers to its customers, and beyond them, to the Korean people.