AG Paxton: Texas Receives $2.8 million in Nationwide Settlement with Hyundai Kia over False Fuel Economy Claims

Texas Insider Report: AUSTIN Texas   Attorney General Ken Paxton today announced that the Consumer Protection Division (CPD) of his office obtained $2.8 million for the state of Texas as part of a $41.2 million multistate settlement with automakers Hyundai and Kia. This investigation found evidence that the automakers misrepresented mileage and fuel economy ratings for a number of their 2011-2013 vehicles a violation of the Texas Deceptive Trade Practices Act.

Hyundai and Kia intentionally falsified fuel economy ratings in order to mislead and deceive Texas consumers said Attorney General Ken Paxton. This settlement will help deter future false advertising protect consumers and ensure fairness in the marketplace.

Texas and 32 other states accused Hyundai and Kia of deceiving unsuspecting consumers and profiting from false mileage claims that were advertised during a period of high gasoline prices. In addition to Texas the multistate group includes Alabama Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Illinois Indiana Iowa Kansas Kentucky Maryland Maine Massachusetts Missouri Nebraska New Jersey New Mexico Nevada North Carolina Ohio Oklahoma Oregon Pennsylvania Rhode Island Tennessee Virginia Washington and Wisconsin and the District of Columbia. CPD is charged with enforcing a variety of state and federal consumer protection laws. Consumers in the state have received hundreds of millions of dollars in refunds services debt forgiveness or loan restructuring because of the work of the division. In addition to penalties and restitution CPD has collected millions of dollars in attorneys fees which have saved taxpayer dollars by helping to replenish funds allotted to the divisions mission to protect consumers. CPD also receives and reviews complaints submitted to the office by consumers; while the attorney general is prohibited from representing such individuals these complaints are used by the office to help shape priorities and identify issues affecting Texans. Consumers can file complaints by visiting: https://www.texasattorneygeneral.gov/cpd/file-a-consumer-complaint