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SettlementCritical RiskMultistate

Oregon AG Coalition Settles with Mercedes-Benz for $150M Over Emissions Fraud

Mercedes-Benz USADecember 22, 2025Oregon Attorney General

Penalty Amount

$149,673,750

Consumers Affected

211,000

Summary

Environmental and consumer protection enforcement action where Mercedes-Benz USA agreed to a nearly $150 million settlement for installing emissions defeat devices in diesel vehicles and misleading consumers about their environmental compliance. The settlement includes significant consumer relief and practice reforms.

Remedy

Mercedes-Benz USA must pay $120 million to the states, with $29,673,750 suspended pending consumer relief. They must provide extended warranties and $2,000 payments to affected consumers, install emission modifications, and refrain from deceptive marketing.

Monetary PenaltyInjunctionConsumer RefundsCompliance ProgramReporting Requirements

Contract Impact

In-house legal teams should review all vehicle sales contracts, lease agreements, and dealer distribution agreements for clauses related to emissions compliance warranties, marketing representations regarding environmental performance, and disclosures about vehicle software or modifications. Specific clauses to scrutinize include those guaranteeing compliance with emissions standards, restrictions on defeat devices, recall procedures, and remedies for misrepresentation. Given the settlement's focus on undisclosed defeat devices and misleading 'environmentally-friendly' claims, contracts may need amendments to explicitly warrant against such devices, require pre-approval of environmental marketing claims, and incorporate enhanced disclosure obligations for any emissions-related software. Additionally, agreements should address coordination for consumer relief programs, such as the $2,000 per vehicle restitution and extended warranties mandated by the settlement.

Contract Search Terms

emissions compliance warrantydefeat device disclosureenvironmental marketing claimsvehicle recall provisionNOx emissions limit clausedealer distribution agreementconsumer restitution clausesoftware modification disclosurewarranty extension provisionunfair/deceptive practice prohibition

Laws Cited

State Unfair Trade Practices Laws

Violation Types

Entity Details

Entity

Mercedes-Benz USA

Also known as: Mercedes-Benz

Industry

Automotive

Multistate Coalition

Alabama AGAlaska AGArkansas AGColorado AGConnecticut AGDelaware AGDistrict of Columbia AGFlorida AGGeorgia AGHawaii AGIdaho AGIllinois AGIndiana AGIowa AGKansas AGKentucky AGLouisiana AGMaine AGMaryland AGMassachusetts AGMichigan AGMinnesota AGMississippi AGMissouri AGMontana AGNebraska AGNevada AGNew Hampshire AGNew Jersey AGNew Mexico AGNew York AGNorth Carolina AGNorth Dakota AGOhio AGOklahoma AGPennsylvania AGRhode Island AGSouth Carolina AGSouth Dakota AGTennessee AGTexas AGUtah AGVermont AGVirginia AGWashington AGWest Virginia AGWisconsin AGWyoming AGPuerto Rico AG

Official Sources

Source Evidence

Entity Name
"Mercedes-Benz USA"
Fine Amount
"$149,673,750 settlement"
Laws Cited
"violating state laws prohibiting unfair or deceptive trade practices"
Violation Types
"vehicles equipped with illegal and undisclosed emissions defeat devices"

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