Hyundai sued over Elantra fuel economy ad claims

The ads touting 'the 40 Mile Per Gallon Elantra' reflected only highway mileage, not city or combined highway/city mileage

Image
Reuters
Last Updated : Jan 24 2013 | 2:11 AM IST

Hyundai Motor Co has been sued for allegedly misleading consumers sensitive to high gas prices that its popular 2011 and 2012 Elantra model is more fuel efficient than it actually is.

The lawsuit filed by the public interest group Consumer Watchdog claims that TV advertisements touting "the 40 Mile Per Gallon Elantra" reflected only highway mileage, not city or combined highway/city mileage.

It claimed that required disclosures of the estimated city mileage, 29 miles per gallon, appeared only briefly in "tiny, faint text" that viewers could not read without freezing their screens. Disclosures in magazine ads for the car were illegible or nonexistent, the complaint added.

The plaintiff, Louis Bird of Sacramento, California, claimed he would not have bought his 2011 Elantra but for Hyundai's advertising, and is paying more than he expected to refuel.

His lawsuit seeks class-action status and unspecified damages for alleged violations of California consumer protection and fraud laws. The lawsuit was filed on July 3 in a California state court in Sacramento.

Hyundai North America, in a statement, referred to tests by the government and three widely-read magazines that suggest the advertised fuel economy is realistic. The South Korean company did not specifically address allegations in the complaint that it should have made fuller disclosures in its advertising.

On May 9, a state judge in Los Angeles ruled in favor of Honda Motor Co in reversing a $9,867 award to a Civic hybrid owner who accused the Japanese automaker of fraudulently overstating its fuel economy in its advertising.

Known for its sleek styling, the five-seat Elantra was the 19th best-selling car or truck in the United States from January to June, with 97,769 vehicle sales.

The case is Bird v. Hyundai Motor America et al, Superior Court of California, Sacramento County.

 

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jul 10 2012 | 4:41 AM IST

Next Story