Attorney General Matthew Platkin has announced that Mercedes-Benz will pay nearly $150 million to settle claims that it installed illegal software in hundreds of thousands of diesel vehicles to make them appear cleaner during emissions tests than they actually were on the road.
The multistate settlement — totaling $149,673,750 — resolves consumer protection and environmental claims brought by 50 attorneys general against Mercedes-Benz USA and Mercedes-Benz Group AG.
New Jersey’s share of the settlement is just over $11 million.
What Mercedes Is Accused of Doing
According to the complaint, Mercedes equipped more than 211,000 diesel cars and vans nationwide with “defeat device” software between model years 2009 and 2016. The software allegedly caused the vehicles’ emission control systems to work harder during official lab tests, then scale back in normal driving, allowing them to emit far more pollution than permitted.
In New Jersey, at least 15,297 vehicles with “BlueTEC” diesel technology were sold or leased with this hidden software.
That extra pollution included higher levels of nitrogen oxides (NOx), a harmful gas that contributes to smog and can worsen asthma and other respiratory problems.
What the Attorney General Says
“Mercedes misled New Jersey consumers to boost their vehicle sales, taking advantage of hard-working New Jerseyans and endangering our air quality and the health of our residents,” Platkin said in announcing the deal.
“Automakers are subject to the same legal rules as every other business: They must be truthful about the products they sell and ensure those products comply with the law,” he added, calling the settlement an important step in holding Mercedes accountable.
Shawn LaTourette, Commissioner of the New Jersey Department of Environmental Protection, said the agreement will help support efforts to clean up the air. He noted that DEP has long focused on the impact of vehicle emissions and said New Jersey is “proud to stand with our partner states” in reaching the settlement.
Acting Division of Consumer Affairs Director Elizabeth Harris said the case reinforces that buyers have a right to honest information. “Consumers have a legal right to know that the products they are buying, especially a purchase as consequential as a vehicle, are living up to the promises and claims of the company selling those products,” she said.
What the Settlement Requires
Under the agreement, Mercedes will:
- Pay $120 million to the states up front, with an additional $29.7 million potentially waived depending on how fully it completes a consumer relief program.
- Send more than $11 million of that total to New Jersey, to be split between the Division of Consumer Affairs and the Department of Environmental Protection. A portion of DEP’s share is earmarked for projects that support electric vehicles and charging infrastructure.
- Stop using or marketing any diesel vehicles with illegal defeat devices.
- Avoid misleading claims about emissions, environmental performance, or compliance with state and federal standards.
The settlement also builds on earlier federal and private lawsuits against Mercedes. Those agreements required the company to:
- Develop and install an approved “emission modification” to bring affected vehicles into compliance with the Clean Air Act.
- Fund environmental mitigation projects designed to offset excess pollution from the vehicles.
What Owners and Lessees Can Get
The settlement includes new protections and additional relief for people who owned or leased affected vehicles:
- Mercedes must pay for approved emissions fixes on vehicles that still haven’t been repaired.
- The company must provide an extended warranty on the emissions system for vehicles that receive the approved fix.
- On top of earlier class-action payments, Mercedes must now offer an additional $2,000 per vehicle to eligible owners and lessees in the U.S. once the approved modification is installed, under a multi-state consumer relief program.
The relief applies to certain “BlueTEC” diesel models from 2009–2016, including various E-Class, GL/GLK/GLE, ML, R-Class, S-Class, and Mercedes-Benz/Freightliner Sprinter vehicles.
Bigger Picture: Cracking Down on Emissions “Cheating”
The Mercedes case is the latest in a series of high-profile actions against automakers accused of emissions cheating. New Jersey previously joined multistate settlements with Volkswagen and Fiat Chrysler over similar defeat-device claims.
Platkin said these cases send a broader message: carmakers cannot market diesel vehicles as clean or environmentally friendly while hiding software that allows them to pollute more on the road than in the lab.
Officials say the money from the settlement — especially the portion directed toward clean transportation and enforcement — is intended not just to hold Mercedes accountable, but also to help prevent similar misconduct and reduce pollution going forward.
