The European Commission [official website] on Thursday announced [press release] plans to take action against seven member states for failing to fulfill their obligations under EU law when they did not set up penalty systems to deter manufacturers from violating the legislation, particularly after Volkswagen (VW) [corporate website] was investigated for implementing software in its vehicles that could cheat emissions tests. The Commission will take action against Germany, Luxembourg, Spain and the UK because they issued approvals for VW vehicles and did not enforce the provisions on penalties against the manufacturer after it was discovered they cheated the emissions tests. Germany and the UK have further been accused of not disclosing to the Commission information it requested concerning nitrogen oxide emissions and Volkswagen irregularities. Notices were also sent to Czech Republic, Greece and Lithuania because they have not introduced penalty systems against car manufacturers in their national laws.
VW is facing legal difficulty around the world over the emissions scandal. South Korea announced Wednesday that it plans to fine [JURIST report] VW over false advertising. In October, A Spanish court ordered [JURIST report] Volkswagen to pay damages to a VW vehicle owner who purchased his car in 2011. A US judge approved [JURIST report] a $14.7 billion settlement in October between VW and the US Department of Justice, the Federal Trade Commission, the state of California and car owners who filed a class action lawsuit over the company’s emissions scandal. In September a German court said VW faces over USD $8.2 billion [JURIST report] in damage claims from investors. That same month, the Australian Competition and Consumer Commission sued [JURIST report] VW and its local subsidiary for misleading customers. In August a district court in Germany ruled [JURIST report] that a collective complaint against VW may move forward. Like US-style class-action lawsuits, the collective complaint was launched on behalf of multiple investors who lost money following the diesel emissions cheating scandal. Last March the US FTC filed suit [JURIST report] against VW for false advertising.