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InvestigationLow RiskMultistate

Connecticut AG Investigates Hyundai Kia for Anti-Theft Immobilizer Failures

Hyundai and KiaJune 20, 2023Connecticut Attorney General

Summary

Connecticut Attorney General William Tong launched a consumer protection investigation into Hyundai and Kia for failing to equip vehicles with standard anti-theft immobilizers between 2011 and 2022, leading to high theft rates and public safety concerns. The investigation seeks records on the companies' decision-making and potential fixes, following a coalition of attorneys general calling for a federal recall.

Contract Impact

In-house legal teams should review vendor agreements with parts suppliers to ensure contracts include specifications for anti-theft immobilizers and compliance with industry safety standards. Customer agreements, such as dealer contracts and end-user warranties, should be examined for clauses on product safety, recall obligations, and warranty coverage for theft-related damages. Specific clauses to focus on include product specification clauses, safety compliance warranties, recall notification procedures, and indemnification provisions. Changes may be necessary to incorporate mandatory anti-theft technology requirements, update warranty terms to address theft vulnerabilities, and strengthen recall coordination mechanisms to mitigate public safety risks.

Contract Search Terms

anti-theft immobilizerengine immobilizerrecall clausewarranty coverageproduct safety standarddefect notification

Violation Types

Entity Details

Entity

Hyundai and Kia

Also known as: Hyundai, Kia

Industry

Automotive

Multistate Coalition

Official Sources

Related Enforcement Actions

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OR

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CT

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