The Ford Motor Company, whose upcoming electric truck plant in West Tennessee has been snapped up by $900 million in tax incentives, has just settled a state lawsuit over allegations that the auto company engaged in misleading advertising that falsely inflated mileage claims for some of its vehicles. during the last decade.
Ford agreed to pay Tennessee $317,000 in a settlement filed in Davidson County Chancery court on May 31. The settlement is part of a $19.2 million settlement with 40 states and the District of Columbia, which conducted a multistate investigation into Ford’s advertising practices. The survey was led by Oregon, Texas, Illinois, Maryland, Vermont and Arizona.
Distribution of settlement funds is at the discretion of Slatery. The regulations state that the funds may be used for consumer protection enforcement, consumer education, or any other purpose permitted by state law.
A spokesperson for Slatery did not respond to a request for information on how the funds will be distributed.
In Tennessee, the lawsuit filed against Ford noted that the automaker made misleading advertising claims about its 2013 and 2014 C-May hybrid that can achieve 47 miles per gallon city and highway fuel economy, but in 2013 , the mileage was reworded to 45 miles per hour. in the city and 40 on the highways.
In 2014, Ford reassessed the mileage again, lowering the estimate to 42 miles per gallon in the city and 37 miles per gallon on the highway. Consumers eventually received compensation for the higher fuel costs, according to the petition, and Ford stopped manufacturing the vehicles in 2018.
For similarly used misleading advertisements about the payload capacity of its Super Duper trucks between 2011 and 2015, the lawsuit said.
Ford, in its agreement, specifically denied violating any federal or state laws. As part of its settlement, Ford has agreed not to make false or misleading advertising claims about the fuel economy or payload capacity of any new vehicle.
Governor Bill Lee announced last year that the state had landed a new $5.6 billion Ford electric truck plant to be located in rural West Tennessee on the long-inactive Memphis Megasite. A special session of lawmakers meeting last October approved the $900 million in incentives clearing the way for the company’s new factory. The new plant, known as Blue Oval City, is one of the largest manufacturing investments in state history and is expected to create 26,000 new jobs.