Georgia AG Announces $150M Settlement with Mercedes-Benz Over Emissions Defeat Devices

GA Consumer Protection Press Releases

Filed December 22nd, 2025

Detected March 17th, 2026

Summary

Georgia Attorney General Chris Carr announced a $149.67 million settlement with Mercedes-Benz USA and Daimler AG for using illegal emissions defeat devices in over 211,000 diesel vehicles. The settlement includes immediate payments to states and a consumer relief program.

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What changed

Georgia Attorney General Chris Carr, as part of a coalition of 50 attorneys general, has secured a $149,673,750 settlement with Mercedes-Benz USA and Daimler AG. The settlement resolves allegations that the companies violated state laws by marketing, selling, and leasing diesel vehicles equipped with undisclosed "emissions defeat devices" between 2008 and 2016. These devices allegedly allowed vehicles to exceed legal nitrogen oxide (NOx) emission limits outside of emissions testing conditions, while Mercedes marketed them as environmentally friendly. The settlement requires Mercedes-Benz USA and Daimler AG to pay $120 million immediately to the states, with an additional $29.67 million suspended pending completion of a consumer relief program.

Regulated entities, particularly automotive manufacturers, should note the prohibition on unfair or deceptive marketing and misrepresentations regarding emissions compliance. Mercedes must implement a consumer relief program that includes installing approved emission modification software on affected vehicles, providing extended warranties, and paying consumers $2,000 per vehicle. The company is also subject to ongoing reporting requirements and reforms to its practices. This action follows similar settlements with Volkswagen, Fiat Chrysler, and Robert Bosch GmbH, indicating a continued focus by state attorneys general on emissions compliance and consumer deception in the automotive sector.

What to do next

Review marketing and sales practices for diesel vehicles to ensure compliance with emissions standards and prohibitions on deceptive practices.
Assess potential exposure if similar emissions defeat devices were used in vehicles sold or leased within the jurisdiction.
Monitor consumer relief program implementation by Mercedes-Benz USA and Daimler AG.

Penalties

$149,673,750 total settlement amount, with $120 million payable immediately and $29,673,750 suspended pending consumer relief program completion. Consumers to receive $2,000 per affected vehicle.

Source document (simplified)

ATLANTA, GA – Attorney General Chris Carr today joined a coalition of 50 attorneys general announcing a $149,673,750 settlement with Mercedes-Benz USA and Daimler AG for violating state laws prohibiting unfair or deceptive trade practices by marketing, selling and leasing vehicles equipped with illegal and undisclosed emissions defeat devices designed to circumvent emissions standards.

Beginning in 2008 and continuing to 2016, the states allege Mercedes manufactured, marketed, advertised and distributed nationwide more than 211,000 diesel passenger cars and vans equipped with software defeat devices that optimized emission controls during emissions tests, while reducing those controls outside of normal operations. The states allege the defeat devices enabled vehicles to far exceed legal limits of nitrogen oxides (NOx) emissions, a harmful pollutant that causes respiratory illness and contributes to the formation of smog. Mercedes allegedly engaged in this conduct to achieve design and performance goals, such as increased fuel efficiency and reduced maintenance, that it was unable to meet while complying with applicable emission standards. Mercedes concealed the existence of these defeat devices from state and federal regulators and the public. At the same time, Mercedes marketed the vehicles to consumers as “environmentally-friendly” and in compliance with applicable emissions regulations.

Today’s settlement requires Mercedes-Benz USA and Daimler AG to pay $120 million to the states immediately upon the effective date of the settlement. An additional $29,673,750 will be suspended and potentially waived pending completion of a comprehensive consumer relief program.

Georgia will receive $4,385,953 through today’s settlement. Approximately 10,005 of impacted vehicles were sold or registered in Georgia.

The consumer relief program extends to the estimated 39,565 vehicles which, as of August 1, 2023, had not been repaired or permanently removed from service in the United States. Mercedes must bear the cost of installing approved emission modification software on each of the affected vehicles. The company must provide consumers with an extended warranty and will pay consumers $2,000 per subject vehicle.

The company must also comply with reporting requirements and reforms to their practices, including a prohibition on any further engagement in unfair or deceptive marketing or sale of diesel vehicles or misrepresentations regarding emissions compliance.

Today’s settlement follows similar settlements reached previously between the states and Volkswagen, Fiat Chrysler and German engineering company Robert Bosch GmbH over its development of the cheat software. Automaker Fiat Chrysler and its subsidiaries paid $72.5 million to the states in 2019. Bosch paid $98.7 million in 2019. Volkswagen reached a $570 million settlement with the states in 2016.

Joining Carr in this settlement are the attorneys general of Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and Puerto Rico joined in today’s settlement.