Accused of Deceptive Practices
False Claims About Installed Batteries
and Unfairly Enticing Consumers
Benz Korea is now subject to regulatory procedures by the Fair Trade Commission (FTC) on allegations of providing customers with false information regarding the electric vehicles involved in the 'Incheon Cheongna Apartment Electric Vehicle Fire.'
According to industry sources on August 18, the FTC examiner sent a review report (equivalent to a prosecutor’s indictment) to Benz Korea on August 12, recommending sanctions for violations of the Act on Fair Labeling and Advertising and the Fair Trade Act.
Benz Korea is accused of falsely informing consumers that all of its electric vehicles are equipped with batteries from CATL, the leading battery manufacturer in China. The company is also suspected of unfairly misleading and enticing consumers by instructing its affiliated dealers to explain this false information to customers during training sessions.
Investigations revealed that the Mercedes-Benz EQE, which first caught fire in the underground parking lot of the Cheongna apartment complex in Incheon in August last year, was equipped with a low-cost 'Farasis' battery from China, not a CATL product. The examiner conducted on-site inspections at Benz Korea headquarters and its affiliated dealerships in September last year and January this year, concluding that sanctions were necessary. The FTC committee is expected to hold a meeting with both the examiner and Benz Korea to determine whether to impose sanctions and, if so, to what extent.
Separately from the FTC investigation, in October last year, 24 individuals including the owner of the Mercedes-Benz EQE filed a damages lawsuit against the German headquarters of Mercedes-Benz, the sales company, and the leasing company at the Seoul Central District Court.
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