Ford reaches $19.2M settlement with Iowa over false advertising claims

Iowa Attorney General Tom Miller Tuesday announced a $19.2 million settlement with Ford Motor Co. over false advertising claims.

The settlement resolves allegations that Ford falsely advertised the real-world fuel economy of model year 2013–2014 C-Max hybrids and the payload capacity of model year 2011–2014 Super Duty pickup trucks. Miller claimed Ford misrepresented the distance consumers could drive on one tank of gas, how driving style affected real world fuel economy and how Ford’s real world fuel economy compared to other hybrids. 

The settlement prohibits Ford from false or misleading advertising claims concerning the estimated fuel economy or payload capacity of a new motor vehicle. Ford is also subjected “to penalties under the Iowa Consumer Fraud Act if a court determines that Ford violated the settlement agreement.”

Commenting on the settlement, Miller said:

Consumers place a premium on fuel-efficiency when shopping for new vehicles. For years, Ford advertised impressive fuel economy and payload capacity for its cars and trucks. Unfortunately, these figures were not based in reality, leaving customers with vehicles that did not meet their standards.