The Federal trade Commission claims VW deceived costumers with false claims about their diesel vehicles.
On Tuesday the Federal Trade Commission (FTC) accused Volkswagen Group of deceiving American consumers into buying emission-spewing diesel vehicles.
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The FTC has sued VW and seeking more than $15 billion in damages, according to USAToday. The case could become one of the largest false-advertising cases in U.S. history.
A four-count civil complaint was filed by the FTC against Volkswagen Group in U.S. District Court in California. The claim alleges VW falsely advertised that it was selling new "clean diesel" vehicles. The advertisements were instrumental in the sale of more than 550,000 VW vehicles.
VW had already been facing a criminal probe and numerous lawsuits in the US. Last year VW admitted it rigged more than half a million vehicles with software to cheat emissions regulations. The new lawsuit is another to the long list of VW woes.
Linda Goldstein is the chair of law firm Manatt Phelps & Phillips' advertising, marketing and media practice. According to Goldstein the FTC lawsuit was a case waiting to happen. Since VW based their entire advertising campaign on the false benefits of their false clean diesel vehicles.
The lawsuit states the FTC wants permanent injunctive relief and refund of monies paid. Although the attorney’s by FTC have not specified an amount publicly, a source close to the case disclosed the amount. The source claims FTC is seeking more than $15 billion in damages from Volkswagen.
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According to the FTC, their lawsuit seeks compensation for the consumers who bought affected cars. FTC also called the ads by VW as a deceptive and unfair practice.