FTC Sues Volkswagen

March 30, 2016 by  

FTC Sues Volkswagen, The Federal Trade Commission added to Volkswagen AG VLKAY 2.23 % ‘s legal woes with the filing of a complaint on Tuesday claiming the auto maker’s advertising falsely touted its diesel vehicles as environmentally friendly.

The FTC said in October that it was investigating Volkswagen’s advertising practices, weeks after the company admitted it installed some 600,000 U.S. vehicles with software meant to trick emissions tests.

The false-advertising complaint was filed in federal court in San Francisco, where civil litigation against Volkswagen has been consolidated. As part of the consolidated litigation, the FTC would be allowed to be part of any global settlement Volkswagen reaches in that court. The FTC does not have the authority to impose fines.

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