Penalty Amount
$4,500,000
New Jersey Attorney General Matthew Platkin announced a multistate settlement with Hyundai and Kia over the sale of millions of U.S. vehicles lacking industry-standard anti-theft engine immobilizer technology, which contributed to a surge in auto thefts. The settlement requires the manufacturers to equip all future U.S.-sold vehicles with immobilizers, offer free ignition cylinder protectors to eligible owners, provide up to $4.5 million in consumer restitution for theft damage, and pay $4.5 million to the coalition states. The 36-state coalition is led by Connecticut, Minnesota, and New Hampshire, with New Jersey as a co-lead.
Hyundai and Kia must equip all future vehicles sold in the United States with industry-standard engine immobilizer anti-theft technology and offer free zinc-reinforced ignition cylinder protectors to eligible vehicle owners and lessees. The manufacturers will provide up to $4.5 million in restitution to consumers whose vehicles were damaged by theft, and pay $4.5 million to the coalition states to cover investigation costs. Eligible consumers have one year from notice to schedule protector installation, and those with qualifying theft-related expenses incurred on or after April 29, 2025, may file restitution claims.
In-house legal teams at automotive manufacturers should review parts supplier agreements to explicitly mandate industry-standard anti-theft technology like engine immobilizers in all future vehicle production contracts. Dealer agreements must be updated to require free installation of zinc-reinforced ignition cylinder protectors for eligible consumers, with clear timelines for notification and service. Consumer lease and sales contracts should include disclosures about anti-theft features, restitution eligibility criteria, and claim filing processes. Additionally, compliance teams should review settlement consent decrees to ensure adherence to injunctive relief requirements, including restitution claim processing deadlines and reporting obligations to coalition states.
Entity
Hyundai and Kia
Industry
AutomotiveOfficial Press Release
https://www.njoag.gov/ag-platkin-announces-settlement-requiring-key-anti-theft-upgrades-on-hyundai-kia-vehicles/
2025 1216 NJ 12.4 HK Clean Final HK Signed New Jersey Agreem
https://www.njoag.gov/wp-content/uploads/2025/12/2025-1216_NJ-12.4-HK-Clean-Final-HK-Signed-New-Jersey-Agreement.pdf
New Jersey Attorney General Enforcement Page
https://www.njoag.gov/about/divisions-and-offices/division-of-consumer-affairs/
"automobile manufacturers Hyundai and Kia"
"For Immediate Release: December 16, 2025"
"Pay $4.5 million to the states to defray the costs of the investigation."
"coalition of 35 other states"
"sale of millions of vehicles nationwide that lacked industry-standard, anti-theft technology"
"Equip all future vehicles sold in the United States with industry-standard, engine immobilizer anti-theft technology;"
$4.5M
Consumer protection case where Hyundai and Kia settled for selling millions of vehicles without industry-standard anti-theft technology, leading to a nationwide surge in thefts and public safety risks. The settlement requires free hardware fixes for affected vehicles and restitution for consumers.
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.
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$400.0M
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