[co-author: Stephanie Kozol]*
Last week, Arizona Attorney General (AG) Kris Mayes filed a lawsuit against FCA (formerly Fiat Chrysler) and Cummins for alleged violations of the Arizona Consumer Fraud Act by falsely advertising that certain vehicles were “clean diesel” vehicles, when in fact the vehicles allegedly had illegal emissions defeat devices. The lawsuit constitutes another example of the state of Arizona retaining outside counsel to take action against the automobile industry regarding the alleged use of emissions defeat devices.
The instant complaint asserts that emissions defeat devices were installed in RAM 2500 and 3500 trucks, allowing the vehicles to pass U.S. Environmental Protection Agency (EPA) emissions tests while emitting higher levels of pollutants during normal operation. As a result, consumers were allegedly misled into paying a premium for what they believed were environmentally friendly “clean diesel” vehicles. Furthermore, the AG asserts that had consumers known the truth about the defeat devices and the vehicles’ actual emissions, they would not have purchased them or paid the premium price.
Arizona’s actions follow a proposed settlement between Cummins and the U.S. Department of Justice, the EPA, and California, where Cummins agreed to pay $1.675 billion in civil penalties for similar violations of the Clean Air Act.
Arizona’s action utilized outside counsel from Grant & Eisenhofer, and constitutes another example of the state of Arizona taking action against the automobile industry regarding the alleged use of emissions defeat devices. Specifically, under a prior administration, Arizona AG Mark Brnovich retained outside counsel to litigate against Mercedes-Benz and Bosch and Volkswagen, resulting in settlements of more than $6 million and $40 million, respectively.
Arizona’s actions are reflective of a broader regulatory trend focusing on vehicle emissions. On March 20, the EPA announced more stringent air pollutant emissions standards for light-duty and medium-duty vehicles. A few days later, on March 29, the EPA issued a final rule revising standards for heavy-duty vehicles. Scrutiny related to vehicles emissions is not siloed to state regulators, rather federal regulators have also taken steps to curtail vehicle emissions.
Why It Matters
Over the past decade, Arizona has been the tip of the spear in litigation against the alleged use of emissions defeat devices by the automobile industry, and this recent lawsuit is another example that regulators are not just limited to using environmental statutes to bring claims for alleged emission violations. Rather, consumer protection statutes — which courts are expressly directed to construe liberally — can also play a pivotal role in AGs taking action against perceived unfair and deceptive acts.
Additional articles on state AG offices in the environmental space include:
*Senior Government Relations Manager
