Photo courtesy of Yonhap News

 

 

[Alpha Biz= Paul Lee] South Korea’s Fair Trade Commission has imposed a 112.39 billion won (about $8.4 million) fine on Mercedes‑Benz Korea for misleading customers about the battery cells used in its electric vehicles.

Authorities said the automaker concealed the use of battery cells that had been subject to fire-risk recalls and sold vehicles while providing inaccurate information about the battery manufacturer.

In June 2023, Mercedes-Benz used Farasis Energy battery cells in its electric models Mercedes‑Benz EQE and Mercedes‑Benz EQS. However, the company distributed sales guidelines indicating that the vehicles were equipped with batteries from CATL, effectively concealing the actual supplier.

The FTC’s full commission determined that the act constituted deceptive customer inducement, and applied the maximum statutory penalty rate in calculating the fine, noting that battery manufacturers are closely tied to public safety.

According to the regulator, the penalty is the third-largest fine imposed for deceptive inducement of consumers and carries the highest applicable penalty rate under the law.

 

 

 

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