Texas Border Business - Advertisement -  AUSTIN— The State of Texas has reached a partial settlement with Volkswagen concerning the consumer protection lawsuit filed by the state on October 8, 2015. Volkswagen misled Texas consumers by marketing and selling its diesel vehicles as “clean” with knowledge that these vehicles were designed to meet emission standards only when being tested. Outside of the testing station, the vehicles would emit up to 40 times the allowable standard for nitrogen oxides. Volkswagen will compensate defrauded consumers through a buy-back program valued at $10 billion, which has been established to buy back or fix consumer’s vehicles. Volkswagen will establish a $2.7 billion trust fund for projects designed to mitigate environmental harm caused by Volkswagen vehicles’ excess emissions. Under the terms of the mitigation trust agreement, approximately $192 million is allocated for projects in the State of Texas. In addition, Volkswagen has agreed to pay $50 million to the State of Texas in civil penalties and attorneys’ fees for the car company’s violations of the Texas Deceptive Trade Practices Act (DTPA), arising from its deceptive advertising and sale of over-emitting diesel vehicles in Texas. |
