Mercedes-Benz Ordered to Compensate 4 Million Won Per Person for Misleading Battery Manufacturer Info

A collective dispute resolution has ruled that Mercedes-Benz Korea should compensate 4 million won per vehicle owner for failing to properly inform consumers about the manufacturer of its electric vehicle batteries.

The Korea Consumer Agency's Consumer Dispute Resolution Commission determined that Mercedes-Benz Korea is liable for damages because it omitted the fact that Chinese Farasis battery cells were installed in five models, including the EQE and EQS, in sales guidelines distributed to dealerships, instead guiding them as if only CATL batteries were equipped.

The subjects of this mediation are 142 consumers who purchased the EQE 500 4MATIC SUV, EQE 53 4MATIC+, EQE 350+, EQE 350 4MATIC, and EQS 350.

They belatedly learned that Chinese Farasis batteries were installed in their vehicles and filed for collective dispute resolution with the Consumer Agency in May.

The commission pointed out that Mercedes-Benz Korea produced sales guidelines containing incorrect information, distributed them to dealerships, and actively utilized them in sales through employee training.

This was based on the reasoning that consumers were deprived of the opportunity to make a rational choice when purchasing vehicles by trusting the explanations of dealership employees.

The compensation amount of 4 million won per person was calculated taking into consideration that the battery is a core component determining vehicle performance and safety, as well as the differences in market share, brand awareness, and technological capability between CATL and Farasis.

Mercedes-Benz Korea must notify whether it accepts the decision within 15 days from the day it receives the decision document.

If Mercedes-Benz Korea accepts this decision, it will have the same effect as a judicial settlement.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.