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CT AG Settles with Ford for $19.2M Over False Hybrid and Truck Ads

Ford Motor CompanyMay 24, 2022Connecticut Attorney General

Penalty Amount

$19,200,000

Summary

Ford Motor Company agreed to a $19.2 million multistate settlement for falsely advertising the fuel economy of 2013–2014 C-Max hybrids and the payload capacity of 2011–2014 Super Duty pickup trucks. The settlement requires Ford to cease deceptive advertising practices and pay penalties to participating states.

Remedy

Ford must pay $19.2 million in settlement funds and is enjoined from making false or misleading advertising claims about vehicle fuel economy and payload capacity.

Monetary PenaltyInjunction

Contract Impact

In-house legal teams should review customer sales contracts, dealer agreements, and marketing/licensing agreements for clauses related to product specifications, advertising representations, and compliance with consumer protection laws. Specifically, examine representations and warranties regarding fuel economy and payload capacity, advertising and marketing compliance provisions, indemnification for false claims, and restitution mechanisms. Changes may include revising product specifications to align with advertised claims, implementing pre-approval processes for marketing materials, adding explicit accuracy guarantees, incorporating penalties for misrepresentations, and ensuring alignment with multistate settlement requirements, including potential corrective advertising obligations.

Contract Search Terms

fuel economy representationpayload capacity specificationadvertising accuracy clauseproduct performance warrantydeceptive trade practicesmultistate settlement complianceconsumer restitution provisioncorrective advertising requirement

Violation Types

Entity Details

Entity

Ford Motor Company

Also known as: Ford

Industry

Automotive

Multistate Coalition

Official Sources

Related Enforcement Actions

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The California Privacy Protection Agency (CalPrivacy) settled with Ford Motor Company requiring the company to pay a $375,703 fine and change its practices. Ford violated the CCPA by requiring consumers to complete an email verification step before they could opt-out of the sale and sharing of their personal information collected through digital properties and connected vehicle services. In addition to the fine, Ford must provide easy methods to submit opt-out requests with minimal steps, audit its tracking technologies, and ensure compliance with opt-out preference signals including Global Privacy Control.

CPPA

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The California Privacy Protection Agency settled with Ford Motor Company for $375,703 after finding that Ford violated the CCPA by requiring email verification for opt-out requests, creating unnecessary friction. Ford must implement easier opt-out methods, conduct a website audit, and comply with global privacy controls.

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CT

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