A pair of automakers will pay the State of Iowa $1.4 million to settle claims that the companies misrepresented fuel economy ratings for some of their vehicles.
The case involves Kia and Hyundai vehicles from 2011, 12 and 13 (2011-2013). Geoff Greenwood, spokesperson for the Iowa Attorney General’s office, says prosecutors believe the automakers deliberately overstated fuel efficiencies of several of their cars.
“We also allege that many consumers made their purchasing decisions based on the window stickers and based on what they saw in these advertisements – that the vehicles got better mileage than they actually did,” Greenwood said. The fuel economy claims came at a time when gasoline prices were at historically high levels. This agreement follows a similar deal that led to payments to owners of Kia and Hyundai vehicles.
“In 2012, the companies announced that consumers who bought the cars could get lifetime reimbursement for the vehicles. A year later, they also announced a one-time, lump sum payment option. The companies contacted consumers directly regarding those programs,” Greenwood said.
The company’s $1.4 million payment to Iowa will go to the state’s Consumer Education and Litigation Fund. Overall, the companies are paying $41.2 million to 33 states and the District of Columbia.