FTC sues Volkswagen, charging false claims made in diesel ads

This is a framegrab from a Volkswagen commercial for a vehicle with their TDI Clean Diesel engine. The Federal Trade Commission (FTC) is investigating whether Volkswagen's "clean diesel" advertising claims amounted to a fraud on American consumers, adding a new avenue for regulators to punish the company for its deception. For years, the company aired memorable TV spots using terms such as “miraculous” to describe the car’s seemingly too-good-to-be-true balance of peppy acceleration, 40-mile-per-gallon gas mileage and low greenhouse gas emissions. The company has withdrawn those ads following last month’s admission it had engaged in an scheme to rig U.S. emissions tests. (Volkswagen/Youtube via AP) This is a framegrab from a Volkswagen commercial for a vehicle with their TDI Clean Diesel engine. The Federal Trade Commission (FTC) is investigating whether Volkswagen's "clean diesel" advertising claims amounted to a fraud on American consumers, adding a new avenue for regulators to punish the company for its deception. For years, the company aired memorable TV spots using terms such as “miraculous” to describe the car’s seemingly too-good-to-be-true balance of peppy acceleration, 40-mile-per-gallon gas mileage and low greenhouse gas emissions. The company has withdrawn those ads following last month’s admission it had engaged in an scheme to rig U.S. emissions tests. (Volkswagen/Youtube via AP)

By Associated Press March 29, 2016 2 min read

WASHINGTON (AP) – A federal consumer watchdog sued Volkswagen on Tuesday, charging the company made false claims in commercials promoting its “Clean Diesel” vehicles as environmentally friendly.

The German automaker hastily pulled the ads following last year’s admission it had installed illegal software on its diesel vehicles to cheat emissions tests. U.S. regulators say Volkswagen’sengines spewed up to 40 times the allowed levels of air pollutants in real-world driving conditions.

The Federal Trade Commission alleges that Volkswagen deceived customers during a seven-year period by selling more than 550,000 diesel cars based on fraudulent claims made through a marketing campaign. That campaign included Super Bowl ads, online social media campaigns and print advertising targeted to “environmentally conscious” consumers.

“Hybrids? They’re so last year,” Volkswagen proclaimed in a mailer to customers promoting its 2009 Jetta TDI. “Now going green doesn’t have to feel like you’re going green.”

The FTC’s action is the latest blow to Volkswagen, which also faces more than $20 billion in potential fines for violating U.S. clean air regulations and hundreds of class action lawsuits filed on behalf of angry customers.