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CT AG Settles with Ford for $19.2M Over False Hybrid and Truck Ads

Ford Motor CompanyMay 24, 2022Connecticut Attorney General

Penalty Amount

$19,200,000

Summary

Ford Motor Company agreed to a $19.2 million multistate settlement for falsely advertising the fuel economy of 2013–2014 C-Max hybrids and the payload capacity of 2011–2014 Super Duty pickup trucks. The settlement requires Ford to cease deceptive advertising practices and pay penalties to participating states.

Remedy

Ford must pay $19.2 million in settlement funds and is enjoined from making false or misleading advertising claims about vehicle fuel economy and payload capacity.

Monetary PenaltyInjunction

Contract Impact

In-house legal teams should review customer sales contracts, dealer agreements, and marketing/licensing agreements for clauses related to product specifications, advertising representations, and compliance with consumer protection laws. Specifically, examine representations and warranties regarding fuel economy and payload capacity, advertising and marketing compliance provisions, indemnification for false claims, and restitution mechanisms. Changes may include revising product specifications to align with advertised claims, implementing pre-approval processes for marketing materials, adding explicit accuracy guarantees, incorporating penalties for misrepresentations, and ensuring alignment with multistate settlement requirements, including potential corrective advertising obligations.

Contract Search Terms

fuel economy representationpayload capacity specificationadvertising accuracy clauseproduct performance warrantydeceptive trade practicesmultistate settlement complianceconsumer restitution provisioncorrective advertising requirement

Violation Types

Entity Details

Entity

Ford Motor Company

Also known as: Ford

Industry

Automotive

Multistate Coalition

OregonTexasIllinoisMarylandVermontArizona

Official Sources

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CPPA

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