Audi Volkswagen Korea(AVK) has been slapped with the heaviest fine for false advertising imposed on any company in South Korea due to claims concerning emissions capacity.
The Korea Fair Trade Commission said on Wednesday that it decided to levy 37-billion-326-million won, or 32-point-two million U.S. dollars, in fines on AVK.
The business watchdog also filed an accusation with the local prosecution against former and incumbent executives of AVK at its German headquarters, ordering them as well as the Audi headquarters to correct their wrongdoings.
AVK installed software in its Euro 5 vehicles that exaggerated the cars’ emission reduction capacity during emission tests between December of 2007 and November of last year.
The Korean headquarters also fabricated advertising to make it seem as if its cars met strict Euro 5 emissions standards.
In particular, it attempted to mislead local consumers by advertising that the vehicles have better emission and pro-environment features than hybrid cars.
They also falsely claimed that the cars meet strict emission tests in all 50 U.S. states, while displaying excellent performance.