Topline
Ford Motor Company agreed to pay $19.2 million to settle allegations of falsely advertising fuel economy ratings and payload capacity for certain pickup trucks and hybrid cars, though the company will not admit wrongdoing.
The Ford Motor Company logo is seen July 20, 2008 at a dealership in Hudson, Wisconsin.
Key Facts
Ford will be paying out varying amounts of money to 40 states and the District of Columbia, which pursued a multistate investigation.
Ford is prohibited from creating false or misleading ads on new vehicles’ fuel economy or payload capacity under the settlement agreement.
Oregon, Texas, Illinois, Maryland, Vermont and Arizona spearheaded the states’ investigation.
Ford did not immediately respond to Forbes’ request for comment.
Key Background
The states alleged Ford misled consumers when the company claimed the coveted title, “Best in Class,” for payload capacity on its 2011-2014 Super Duty pickups after other trucks had surpassed Ford in the previous model year. Ford’s 2013 C-Max ‘Hybrid Games’ advertisements featured a clip of the hybrid outpacing a Toyota Prius and was tagged as deceptive by the participating states. The ad boasted the C-Max vehicle “is more powerful without sacrificing fuel efficiency.” Ford would later cut down the initial advertised 47 miles per gallon, dropped to 42 miles per gallon while driving in city traffic conditions, meaning with frequent braking and driving at lower speeds, and dropped further to 37 miles per gallon for highway travel, with travel at higher speeds.
Further Reading
Ford to pay U.S. states $19.2 million over false advertising claims (Reuters)
Source: https://www.forbes.com/sites/kaliedrago/2022/05/24/ford-to-pay-192-million-in-multistate-settlement-over-false-advertising-allegations/