Attorney General Alan Wilson, along with a coalition of 50 attorneys general, has announced a settlement totaling nearly $150 million with Mercedes-Benz USA. The agreement resolves allegations that the automaker violated state laws prohibiting unfair or deceptive trade practices by marketing and selling vehicles equipped with illegal and undisclosed emissions defeat devices.
The lawsuit claimed that between 2008 and 2016, Mercedes manufactured and distributed over 211,000 diesel cars and vans in the United States fitted with software designed to manipulate emissions controls during regulatory testing. Outside of test conditions, these controls were reduced, resulting in nitrogen oxides (NOx) emissions exceeding legal limits. NOx is known to contribute to respiratory illness and smog formation.
“Today’s settlement is a win for South Carolina,” Attorney General Wilson said. “This car manufacturer circumvented rules to meet its own goals while posing serious potential harm to our citizens.”
According to the settlement terms, Mercedes-Benz USA will pay $120 million immediately to the participating states. An additional $29,673,750 may be waived if the company completes a comprehensive consumer relief program. South Carolina’s share of the settlement is $2,024,981. Approximately 1,820 affected vehicles were sold or registered in the state.
As part of the consumer relief measures, Mercedes must install approved emission modification software on an estimated 39,565 vehicles that remain unrepaired or not permanently removed from U.S. roads as of August 1, 2023. The company will also provide consumers with an extended warranty and pay $2,000 per vehicle affected.
The settlement requires Mercedes-Benz USA to change its practices by prohibiting further deceptive marketing or sales related to diesel vehicles and misrepresentations about emissions compliance. Additional reporting requirements are included as part of broader reforms.
This resolution follows previous multi-state settlements involving Volkswagen ($570 million in 2016), Fiat Chrysler ($72.5 million in 2019), and Robert Bosch GmbH ($98.7 million in 2019) over similar use of emissions-cheating technology.
The South Carolina Attorney General serves as the state’s chief prosecutor and legal counsel while overseeing divisions responsible for criminal matters, civil litigation, securities regulation, and consumer protection across the state (official website). The office provides victim support services and collaborates with law enforcement on prosecutions while promoting public safety through education initiatives (official website).
Alan Wilson currently leads this statewide operation as Attorney General (official website).
You can read the judgment here.