Tim Griffin announced Arkansas has joined a coalition of all 50 attorneys general in a $149.7 million multistate settlement with Mercedes-Benz USA, LLC and Mercedes-Benz Group AG over allegations the companies violated state consumer protection laws by installing illegal emissions defeat devices in diesel vehicles.
According to the settlement, Mercedes manufactured and sold more than 211,000 diesel passenger cars and vans nationwide between 2008 and 2016 that were equipped with undisclosed software designed to cheat emissions tests. The software allegedly reduced emissions controls during testing while allowing vehicles to emit nitrogen oxide well above legal limits during normal driving.
“Protecting Arkansas consumers from deceptive trade practices is a top priority for my office,” Griffin said. “Mercedes-Benz falsely marketed their vehicles as environmentally compliant while secretly installing emissions defeat devices. This settlement ensures accountability, consumer compensation, and meaningful reform.”
Nitrogen oxide emissions are linked to respiratory illnesses and smog formation. States allege Mercedes used the defeat devices to boost performance, fuel efficiency, and reduce maintenance costs while concealing the software from regulators and consumers.
Under the agreement, Mercedes will pay $120 million immediately, with an additional $29.7 million suspended pending completion of a comprehensive consumer relief program. Arkansas will receive $250,000, with approximately 704 affected vehicles sold or registered in the state.
The settlement provides relief for an estimated 39,565 unrepaired vehicles nationwide. Mercedes must install approved emissions modification software at no cost, provide an extended warranty, and pay $2,000 per affected vehicle to consumers.
The agreement also requires strict reporting requirements and prohibits future deceptive marketing or misrepresentation of diesel vehicle emissions compliance.
This settlement follows earlier multistate actions against other automakers, including Volkswagen, Fiat Chrysler, and Robert Bosch GmbH, over similar emissions violations.
Griffin said the agreement reinforces Arkansas’s commitment to consumer protection, environmental responsibility, and holding corporations accountable when they violate the law.
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