Dieselgate: US trade commission sues VW

The US Federal Trade Commission has sued Volkswagen for "deceptively" advertising its 'Clean Diesel' vehicles as environmentally friendly.

In its lawsuit filed in the United States District Court in San Francisco yesterday, the US FTC says Volkswagen of America launched a "high-profile marketing campaign" that targeted green-minded consumers by promoting the low emissions of its diesel vehicles.

However, the US FTC says this was misleading because Volkswagen has admitted to using 'defeat device' software that allowed 580,000 diesel vehicles built since 2009 to emit up to 40 times more nitrogen oxide than legally allowed.

According to the FTC, which also claims that "hidden defeat devices will significantly reduce the vehicles’ resale value", the deceptive campaign continued for seven years, during which time more than 550,000 diesel-powered Volkswagen vehicles were purchased or leased in the US.

Filed on behalf of owners of TDI versions of the VW Jetta, Passat, and Touareg as well as TDI-powered Audis, the lawsuit is seeking a court order requiring Volkswagen to compensate consumers who bought or leased an affected vehicle between late 2008 and late 2015.

"For years Volkswagen's ads touted the company's 'Clean Diesel' cars even though it now appears Volkswagen rigged the cars with devices designed to defeat emissions tests," FTC Chairwoman Edith Ramirez said in a statement.

According to the FTC, Volkswagen's high-profile diesel vehicle marketing campaign -- which ran from 2008 to late last year, cost tens of millions of dollars and included Super Bowl ads, online social media campaigns and print advertising -- targeted “progressive” and “environmentally conscious” consumers.

“Volkswagen USA’s marketers studied their targets’ psychology, concluding that such consumers ‘rationalize themselves out of their aspirations and justify buying lesser cars under the guise of being responsible,’” the FTC said.

“According to Volkswagen USA, such consumers understood purchasing an eco-conscious vehicle as part of being ‘responsible’.”

The FTC lawsuit is the latest in a string of litigation actions facing Volkswagen due to the 'Dieselgate' emissions cheating debacle, including more than 500 civil lawsuits filed on behalf of US and Australian consumers, as well as come US states.

The US Justice Department is seeking up to $US46 billion for violating environmental laws and a federal judge last week gave Volkswagen until April 21 to announce how it will fix affected vehicles.

Volkswagen has said it will reveal the full extent of the Dieselgate scandal next month, and has already commenced the recall of affected models in Australia, starting with the Amarok ute.

Related Reading:
Full coverage of Dieselgate on motoring.com.au