U.S. Sues VW Over “Clean Diesel” Ad Claims

The U.S. Federal Trade Commission has accused Volkswagen USA of false and misleading advertising for promoting “clean diesels” that had been rigged to cheat federal emission tests.

The civil lawsuit, which was filed earlier today in U.S. District Court in San Francisco, claims VW’s deception affected more than 550,000 vehicles sold for $22,000-$125,000 each since late 2008 and cost American consumers “billions of dollars in injury.”

The complaint says VW wrongly claimed—often to environmentally conscious consumers in particular— that its diesels were environmentally friendly, met U.S. emission standards, were cleaner than gasoline-fueled engines and would provide higher resale value than comparable gasoline vehicles.

VW acknowledged it equipped the affected diesels with software that caused them to emit as much as 40 times the allowable level of nitrogen oxides when they weren't being tested. The FTC says the vehicles contribute to smog, acid rain, water pollution, childhood asthma, adult respiratory ailments and premature death.

The complaint asks the court to order VW to compensate affected customers by an unspecified amount and forfeit its “ill-gotten monies.”