Volkswagen sued by FTC over false claims in commercials

Volkswagen was yesterday been sued by a federal consumer watchdog over false claims in commercials promoting its ''Clean Diesel'' vehicles as environmentally friendly.

The German automaker pulled back the ads last year following its admission of having installed software on its diesel vehicles to cheat emissions tests.

According to US regulators, Volkswagen's engines spewed up to 40 times the allowed levels of air pollutants in real-world driving conditions.

According to the Federal Trade Commission, Volkswage deceived customers over a seven-year period by selling its diesel cars based on fraudulent claims made through its marketing campaigns, including Super Bowl ads, online social media campaigns and print advertising targeted to ''environmentally conscious'' consumers.

''Hybrids? They're so last year,'' Volkswagen proclaimed in a mailer to customers promoting its 2009 Jetta TDI. ''Now going green doesn't have to feel like you're going green.''

According to commentators, the FTC action comes as the latest blow to Volkswagen, which is also facing over $20 billion in potential fines for violating US clean air regulations.

''For years Volkswagen's ads touted the company's 'Clean Diesel' cars even though it now appears Volkswagen rigged the cars with devices designed to defeat emissions tests,'' said FTC chairwoman Edith Ramirez, Associated Press reported. ''Our lawsuit seeks compensation for the consumers who bought affected cars based on Volkswagen's deceptive and unfair practices.''

The Federal Trade Commission is reportedly seeking more than $15 billion in damages in what could be one of the largest false-advertising cases in US history.

The FTC's four-count civil complaint in the US District Court in California, alleges that the company falsely advertised that it was selling new "clean diesel" vehicles that were purchased by about 550,000 buyers.

"This was an FTC case waiting to happen because they based their entire advertising campaign on this benefit," said Linda Goldstein, chair of law firm Manatt Phelps & Phillips' advertising, marketing and media practice, in an interview, usatoday.com reported.

The FTC is pursuing "permanent injunctive relief, rescission, restitution, the refund of monies paid, disgorgement of ill-gotten monies, and other equitable relief," according to the lawsuit.