Toyota Resolves State Attorneys General Inquiry By Paying $29M Settlement

by Tara Arick on February 19, 2013 · 0 comments

in Product Liability

- From LexisNexis® Mealey’s™ Daily Legal News.

Toyota Motor North America announced on Feb. 14 that it has reached a $ 29 million settlement agreement with the attorneys general of 29 states and one U.S. territory to resolve issues related to vehicle recalls conducted by the company from 2005 to 2010.

The attorneys general alleged that Toyota engaged in unfair and deceptive practices when it failed to promptly disclose known safety defects with accelerator pedals.

Vehicle Safety 

Per the agreement, Toyota has committed to take steps to make vehicle information more easily accessible to consumers to help them operate their vehicles safely and make more informed choices, the company explained in a press release. Toyota also agreed to continue other customer-focused initiatives, including its rapid-response service teams, its expanded network of product quality field offices across the United States and a range of customer care amenities for owners of vehicles subject to certain recalls.

In addition, New Jersey Attorney General Jeffrey S. Chiesa said in a press release that the settlement provides that Toyota is:

* “Prohibited from reselling a vehicle it reacquired with alleged safety defects without informing the purchaser about the alleged defect(s) and certifying that the reacquired vehicle has been fixed;

* Prohibited from misrepresenting the purpose of an inspection or repair when directing consumers to bring their vehicles to a dealer for inspection or repair; and

* Required to exclude from the “Toyota Certified Used Vehicles” or “Lexus Certified Pre-Owned Vehicles” categories any vehicle voluntarily repurchased by Toyota to ensure customer satisfaction.”

Chiesaled the investigation, and the following states and U.S. territory participated in the settlement: Alabama, American Samoa, Arizona, Arkansas, Colorado, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin.

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