Md. A.G. Settles with Hyundai, Kia Over Allegedly Misleading Fuel Economy Claims

Hyundai and Kia Will Pay $41.2 Million to Resolve Allegations of Consumer Protection Law Violations


BALTIMORE (Oct. 27, 2016)—Maryland Attorney General Brian E. Frosh today announced that his office has reached a settlement with Hyundai Motor Company, Hyundai Motor America, Kia Motors Corporation, Inc., and Kia Motors America, Inc., resolving claims that the companies misrepresented the mileage and fuel economy ratings for some of their model year 2011, 2012 and 2013 vehicles. The $41.2 million settlement concludes a multi-state investigation into the companies' business practices related to downgraded fuel economy estimates on affected vehicles. Maryland joined 33 states and the District of Columbia in announcing the settlement. Maryland will receive approximately $1.38 million of the total settlement.

"Consumers should feel confident that the manufacturers' representations of their vehicles' fuel efficiency are true and accurate," said Attorney General Frosh. "Based on the allegations in this case, consumers who bought these cars not only did not get what was advertised, but they also ended up paying more at the pump."

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 because those ratings were higher than those vehicles' actual fuel economy. Attorney General Frosh, along with 33 other attorneys general, alleged that Hyundai and Kia incorporated inflated and inaccurate test data into the estimated mileage ratings displayed on hundreds of thousands of vehicles in Maryland and across the country. The attorneys general also alleged that the companies sought to capitalize on the erroneous mileage estimates by prominently featuring them in a variety of advertisements and other promotional campaigns.

The manufacturers have separately provided restitution to consumers injured by its mileage advertisements. The companies must pay $1.38 million to resolve the claims brought by the Maryland Attorney General's Office.

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