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Emission Rules Breach: S.Korea Fines Mercedes $16.9m

The Korea Fair Trade Commission (KFTC) has imposed a fine of 20.2 billion won ($16.9 million) on German carmaker Mercedes-Benz and its Korean unit for false advertising related to gas emissions of its diesel passenger vehicles.

The South Korean antitrust regulator accused Mercedes of tampering with pollution mitigation devices by installing illegal software in its vehicles, making them perform at lower levels in ordinary driving conditions than during certification tests.

According to a statement from the Commission, a total of 15 Mercedes models had such software installed.

“It is meaningful to impose sanctions against the country’s No.1 imported car sales operator for obstructing consumers’ rational purchase choices with false and deceptive advertisements about its emission reduction performance even after the Dieselgate scandal,” the statement read.

The KFTC said the German carmaker also falsely advertised that their vehicles’ emissions remained at a minimum level and met the Euro 6 emission standards between August 2013 and December 2016.

Reuters reports that last year, the KFTC imposed a fine or ordered corrective actions for Audi-Volkswagen (VOWG_p.DE) Korea, Nissan Motor Corp , Stellantis (STLA.MI) Korea and Porsche AG for similar emissions rigging incidents.

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