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UNITED STATES DISTRICT COURT
 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

IN RE: VOLKSWAGEN “CLEAN DIESEL” 

MARKETING, SALES PRACTICES, AND 

PRODUCTS LIABILITY LITIGATION 

Relates to: FTC v. Volkswagen Group of

America, Inc., No. 3:16-cv-1534 (N.D. Cal). 

Case No. 3:15-md-2672 

[PROPOSED] PARTIAL 

STIPULATED ORDER FOR 

PERMANENT INJUNCTION AND 

MONETARY JUDGMENT 

Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its Complaint 

for Permanent Injunction and Other Equitable Relief (“Complaint”) in this matter, pursuant to 

Section 13(b) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b). The FTC 

and Defendant stipulate to the entry of this Partial Stipulated Order for Permanent Injunction and 

Monetary Judgment (“Order”), which partially resolves the FTC’s allegations in its Complaint. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendant participated in deceptive and unfair acts or 

practices in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), through the advertising, 

marketing, offering for sale, sale, offering for lease, lease, and distribution of certain 

Volkswagen and Audi TDI vehicles in the United States and its territories. 

3. Defendant neither admits nor denies any of the allegations in the Complaint, 

except as specifically stated in this Order. Only for purposes of this action, Defendant admits the 

facts necessary to establish jurisdiction. 

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4. This Order resolves all of the FTC’s allegations related to Defendant’s 2.0-liter 

TDI “Clean Diesel” vehicles, except it reserves the FTC’s allegations regarding lessees of 

Defendant’s 2.0-liter TDI “Clean Diesel” vehicles whose leases terminated before September 18, 

2015. This Order does not resolve the FTC’s allegations regarding Defendant’s 3.0-liter TDI 

“Clean Diesel” vehicles. 

5. Defendant waives any claim that it may have under the Equal Access to Justice 

Act, 28 U.S.C. § 2412, concerning the prosecution of this action through the date of this Order, 

and agrees to bear its own costs and attorney fees. 

6. Defendant and the FTC waive all rights to appeal or otherwise challenge or 

contest the validity of this Order. 

DEFINITIONS 

For the purpose of this Order, the following definitions apply: 

A. “Approved Emissions Modification” means a modification to an Eligible 

Vehicle approved by the Environmental Protection Agency (EPA) and the California Air 

Resources Board (CARB) in accordance with Appendix B of the DOJ Consent Decree. 

B. “Approved Emissions Modification Restitution” means the monetary 

compensation that Defendant will pay to Eligible Owners who elect an Approved Emissions 

Modification under the Settlement Program, specified in the second column of Attachment 1A or 

1C, modified by any Mileage Adjustment in Attachments 2A through 2C, if applicable. 

C. “Buyback” means the process by which an Eligible Owner may sell an Eligible 

Vehicle to Defendant (or other entity authorized by Defendant) under the Settlement Program in 

exchange for Buyback Restitution. If an Eligible Owner does not possess title to the Eligible 

Vehicle, for Defendant to acquire title and the Buyback to occur, Defendant and the Eligible 

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Owner must complete the steps required by Section VII.G.1 and the claim application pursuant 

to Section XIII. 

D. “Buyback Restitution” means the monetary compensation that Defendant will 

pay to Eligible Owners who elect a Buyback under the Settlement Program, specified in the first 

column of Attachments 1A or 1C, modified by any Mileage Adjustment in Attachments 2A 

through 2C, if applicable. 

E. “Claims Supervisor” means the entity appointed by the Court to oversee the 

claims process. 

F. “Class Action” means certain coordinated class, mass, and individual actions, 

however named, that are coordinated pursuant to 28 U.S.C. § 1407 in the United States District 

Court for the Northern District of California in In re: Volkswagen “Clean Diesel” Marketing, 

Sales Practices, and Products Liability Litigation, No. 3:15-md-2672-CRB (N.D. Cal.) and 

reflected in the Consolidated Consumer Class Action Complaint filed in this action on 

February 22, 2016 (Docket No. 1230). 

G. “Class Action Settlement Agreement” means the Consumer Class Action 

Settlement Agreement and Release filed on June 28, 2016 by the attorneys representing certain 

current and former owners and lessees of certain Volkswagen and Audi branded vehicles with 

2.0-liter TDI engines in this action, In re: Volkswagen “Clean Diesel” Marketing, Sales 

Practices, and Products Liability Litigation, No. 3:15-md-2672-CRB (N.D. Cal.). If the Court 

approves the proposed Consumer Class Action Settlement Agreement and Release, “Class 

Action Settlement Agreement” shall refer to that agreement as and in the form it is ultimately 

approved and entered by the Court. 

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H. “Consumer Payment” means any payment under the Settlement Program made 

directly to an Eligible Consumer or to a lender on behalf of an Eligible Owner for the purpose of 

satisfying an outstanding Loan Obligation related to an Eligible Vehicle. 

I. “Defeat Device” means “an auxiliary emission control device (AECD) that 

reduces the effectiveness of the emission control system under conditions which may reasonably 

be expected to be encountered in normal vehicle operation and use, unless: (1) Such conditions 

are substantially included in the Federal emission test procedure; (2) The need for the AECD is 

justified in terms of protecting the vehicle against damage or accident; (3) The AECD does not 

go beyond the requirements of engine starting; or (4) The AECD applies only for emergency 

vehicles[,]” 40 C.F.R. § 86.1803-01, or “any part or component intended for use with, or as part 

of, any motor vehicle or motor vehicle engine, where a principal effect of the part or component 

is to bypass, defeat, or render inoperative any device or element of design installed on or in a 

motor vehicle or motor vehicle engine in compliance with [the Emission Standards for Moving 

Sources section of the Clean Air Act], and where the person knows or should know that such part 

or component is being offered for sale or installed for such use or put to such use,” 42 U.S.C. 

§ 7522(a)(3)(B). 

J. “Defendant” means Volkswagen Group of America, Inc. (“VWGoA”), including 

VWGoA d/b/a Volkswagen of America, Inc. and Audi of America, Inc., as well as each of their 

successors and assigns. 

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K. “DOJ Consent Decree” means the Draft Partial Consent Decree filed in this 

action, In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability 

Litigation, No. 3:15-md-02672-CRB (N.D. Cal.), by the United States on June 28, 2016. If the 

Court approves the Draft Partial Consent Decree, “DOJ Consent Decree” shall refer to that 

decree as and in the form it is ultimately approved and entered by the Court. 

L. “DOJ Emissions Modification Notice” means the notice(s) that are required to 

be sent pursuant to Subsection 3.2 of Appendix A to the DOJ Consent Decree to notify affected 

Eligible Owners and Eligible Lessees for whom Defendant has a mailing or email address of 

either the availability or non-availability of an Approved Emissions Modification for certain 

Eligible Vehicles. 

M. “Effective Date” means the date the Court approves and enters this Order, the 

DOJ Consent Decree, or the Class Action Settlement Agreement, whichever is latest. 

N. “Eligible Consumer” means any Eligible Owner, Eligible Seller, or Eligible 

Lessee, as defined by this Order, who has not excluded himself or herself from the Settlement 

Program. Consumers who exclude themselves from the Settlement Program are eligible for the 

remedies set forth in Subsection 5.1 of Appendix A to the DOJ Consent Decree. 

O. “Eligible Lessee” means (1) the current lessee or lessees of an Eligible Vehicle 

with a lease issued by VW Credit, Inc.; (2) the former lessee or lessees of an Eligible Vehicle 

who had an active lease issued by VW Credit, Inc. as of September 18, 2015 and who 

surrendered or surrenders the leased Eligible Vehicle to Volkswagen; or (3) the current owner of 

an Eligible Vehicle who had an active lease issued by VW Credit, Inc. as of September 18, 2015 

and who acquired ownership of the previously leased Eligible Vehicle at the conclusion of the 

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lease after June 28, 2016. For avoidance of doubt, no person shall be considered an Eligible 

Lessee by virtue of holding a lease issued by a lessor other than VW Credit, Inc. 

P. “Eligible Lessee Restitution” means the monetary compensation, specified in 

Attachments 3A or 3C, that Defendant will pay to Eligible Lessees under the Settlement 

Program, in addition to a Lease Termination or an Approved Emissions Modification. 

Q. “Eligible Lessee Restitution Adjustment” means any fees charged upon 

termination of a lease for excess wear and use and excess mileage at the point of vehicle 

surrender, and other amounts due, such as delinquent lease payments and related late payment 

fees, or costs associated with tickets and tolls, pursuant to the lease contract. 

R. “Eligible Owner” means the registered owner or owners of an Eligible Vehicle 

on June 28, 2016, or the registered owner or owners who acquire an Eligible Vehicle after 

June 28, 2016, but before the deadline to submit a claim under the Settlement Program, except 

that the owner of an Eligible Vehicle who had an active lease issued by VW Credit, Inc. as of 

September 18, 2015 and purchased the Eligible Vehicle previously leased by that owner after 

June 28, 2016 shall be an Eligible Lessee. For avoidance of doubt, an Eligible Owner ceases to 

be an Eligible Owner if he transfers ownership of the Eligible Vehicle to a third party on or after 

June 28, 2016; and a third party who acquires ownership of an Eligible Vehicle on or after 

June 28, 2016 thereby becomes an Eligible Owner if that third party otherwise meets the 

definition of an Eligible Owner. An owner of an Eligible Vehicle will not qualify as an Eligible 

Owner while the Eligible Vehicle is under lease to any third party, although any such owner, 

including any leasing company other than VW Credit, Inc., who otherwise meets the definition 

of an Eligible Owner would become an Eligible Owner if such lease has been canceled or 

terminated and the owner has taken possession of the vehicle. In exceptional cases, specific 

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arrangements may be made with the leasing company, in consultation with the Claims 

Supervisor, such that, without canceling or terminating the lease, the leasing company may be 

treated as an Eligible Owner and obtain an Approved Emissions Modification and Approved 

Emissions Modification Restitution. 

S. “Eligible Owner Non-Operable Restitution” means the monetary compensation 

that Defendant will pay to Eligible Owners under the Settlement Program whose vehicle is 

Operable as of the earlier of the date set by the Court for consumers to opt out of the Class 

Action or the Effective Date, but which ceases to be Operable before the vehicle can be 

surrendered for a Buyback or receive an Approved Emissions Modification, specified in the 

second column of Attachment 1A. 

T. “Eligible Seller” means a person who purchased or otherwise acquired an 

Eligible Vehicle on or before September 18, 2015 and sold or otherwise transferred ownership of 

such vehicle after September 18, 2015 but before June 28, 2016. For avoidance of doubt, 

Eligible Seller includes any owner whose Eligible Vehicle was totaled and who consequently 

transferred title of their vehicle to an insurance company on or after September 18, 2015, but 

before June 28, 2016. 

U. “Eligible Seller Restitution” means the monetary compensation that Defendant 

will pay to Eligible Sellers who timely file a claim application under and participate in the 

Settlement Program, equal to 50% of the amount specified in the second column of Attachment 

1A for the Eligible Seller’s Eligible Vehicle. Eligible Seller Restitution shall be paid from funds 

set aside in accordance with the Settlement Program. 

V. “Eligible Vehicle” means Model Year 2009 through 2015 Volkswagen light-duty 

vehicles equipped with 2.0-liter TDI engines that are (1) in the table immediately below this 

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paragraph; (2) registered with a state Department of Motor Vehicles or equivalent agency or held 

by bill of sale by a non-Volkswagen Dealer in the United States or its territories as of June 28, 

2016; (3) for an Eligible Owner, is currently Operable or ceases to be Operable after the date set 

by the Court for consumers to opt out of the Class Action or the Effective Date, whichever is 

earlier; and (4) have not been modified pursuant to an Approved Emissions Modification. 

Eligible Vehicle excludes any Volkswagen or Audi vehicle that was never sold in the United 

States or its territories. 

Model Year Make and Model(s) 

2009 VW Jetta, VW Jetta SportWagen 

2010 VW Golf, VW Jetta, VW Jetta SportWagen, Audi A3 

2011 VW Golf, VW Jetta, VW Jetta SportWagen, Audi A3 

2012 VW Golf, VW Jetta, VW Jetta SportWagen, Audi A3 

2012 VW Passat 

2013 VW Beetle, VW Beetle Convertible, VW Golf, VW 

Jetta, VW Jetta SportWagen, Audi A3 

2013 VW Passat 

2014 VW Beetle, VW Beetle Convertible, VW Golf, VW 

Jetta, VW Jetta SportWagen 

2014 VW Passat 

2015 VW Beetle, VW Beetle Convertible, VW Golf, VW 

Golf SportWagen, VW Jetta, VW Passat, Audi A3 

W. “Escrow Account” means the sole escrow account created under the Settlement 

Program and managed by the Escrow Agent. 

X. “Escrow Agent” means the entity to address and hold for distribution the funds 

identified in the Class Action Agreement pursuant to the terms of the Escrow 

Agreement. Subject to approval by the Court, Citibank Private Bank shall serve as Escrow 

Agent. 

Y. “Escrow Agreement” means the agreement pursuant to the Class Action 

Settlement Agreement that specifies the terms and conditions for any release of funds from the 
 

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Escrow Account. 

Z. “Funding Pool” means, for purposes of this Order and the Settlement Program, 

the sole funding pool from which Eligible Owners, Eligible Lessees, and Eligible Sellers will be 

compensated. The Funding Pool is based on an assumed 100% consumer participation rate and 

an assumed 100% Buyback of all purchased Eligible Vehicles and 100% Lease Termination of 

all leased Eligible Vehicles. Upon completion of the Settlement Program, Volkswagen will be 

entitled to retain any unspent portion of the Funding Pool. 

AA. “Generation 1” means the following Eligible Vehicles with model years: 

Volkswagen Jetta (2009-2014), Jetta SportWagen (2009-2014), Golf (2010-2014), Beetle (2013­

2014), Beetle Convertible (2013-2014), and Audi A3 (2010-2013). 

BB. “Generation 2” means the following Eligible Vehicles with model years: 

Volkswagen Passat (2012-2014). 

CC. “Generation 3” means the following model year 2015 Eligible Vehicles: 

Volkswagen Jetta, Golf, Golf SportWagen, Beetle, Beetle Convertible, Passat, and Audi A3. 

DD. “Holidays” means the following days: New Year’s Day; Martin Luther King, Jr. 

Day; Easter Sunday; Memorial Day; Independence Day; Labor Day; day before Thanksgiving; 

Thanksgiving Day; day after Thanksgiving; Christmas Eve; Christmas Day; day after Christmas; 

and New Year’s Eve. 

EE. “Lease Termination” means the process by which an Eligible Lessee may have 

the lease for that lessee’s Eligible Vehicle terminated, without paying an early termination 

penalty, as described in Section VIII.A. 

FF. “Loan Obligation” means any debt incurred by an Eligible Owner and secured 

by an Eligible Vehicle, whether through VW Credit, Inc. or any other lender. 

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GG. “Means and Instrumentalities” means any information, including, but not 

necessarily limited to, any advertising, labeling, or promotional materials, or sales training 

materials for use by a Volkswagen Dealer in marketing a product or service. 

HH. “Mileage Adjustment” means the positive or negative dollar adjustment 

specified in Attachments 2A through 2C. 

II. “Operable” means that the vehicle so described can be driven under its own 2.0­

liter TDI engine power. A vehicle is not Operable if it had a branded title of “Assembled,” 

“Dismantled,” “Flood,” “Junk,” “Rebuilt,” “Reconstructed,” or “Salvaged” on September 18, 

2015, and was acquired by any person or entity from a junkyard or salvage yard after 

September 18, 2015. 

JJ. “Post-September 2015 Owner Adjustment” means the additional sum, if any 

exists, that must be offered to Eligible Owners who purchased an Eligible Vehicle after 

September 18, 2015 but before June 28, 2016, and who elect a Buyback or an Approved 

Emissions Modification under the Settlement Program. The Post-September 2015 Owner 

Adjustment is equal to the Eligible Seller Restitution funds for an owner’s Eligible Vehicle 

multiplied by the percentage of all funds set aside for Eligible Seller Restitution that are not 

claimed by Eligible Sellers, out of the total funds available for Eligible Seller Restitution. 

KK. “Post-September 2015 Owner Restitution” means the monetary compensation 

that Defendant will pay to Eligible Owners who purchased an Eligible Vehicle after 

September 18, 2015 but before June 28, 2016, and who elect a Buyback or an Approved 

Emissions Modification under the Settlement Program. The Post-September Owner Restitution 

is the sum of the following: (1) the Buyback Restitution amount or Approved Emissions 

Modification Restitution amount, as appropriate, for the Eligible Vehicle; (2) minus 50% of the 
 

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Approved Emissions Modification Restitution amount (the amount specified in the second 

column of Attachment 1A or 1C); plus (3) a Post-September 2015 Owner Adjustment, if any. 

LL. “Related Orders” means the DOJ Consent Decree and Class Action Settlement 

Agreement. 

MM. “Settlement Program” means the overall program, rights, and obligations 

created under this Order and the related Class Action Settlement Agreement to provide notice 

and restitution to Eligible Consumers. 

NN. “Volkswagen Dealer” means any of Defendant’s authorized Volkswagen or Audi 

dealers located in the United States or its territories evidenced by a current and valid 

Volkswagen Dealer Agreement or Audi Dealer Agreement. 

OO. “VW Credit, Inc.” means VW Credit, Inc., including VW Credit Inc. d/b/a 

Volkswagen Credit and Audi Financial Services. 

ORDER 

I. BAN ON UNFAIR PRACTICES 

IT IS ORDERED that Defendant is permanently restrained and enjoined from 

advertising, marketing, offering for sale, selling, offering for lease, leasing, or distributing, or 

assisting others in the advertising, marketing, offering for sale, selling, offering for lease, leasing, 

or distributing in the United States or its territories any vehicle that contains a Defeat Device. 

Provided, however, that in any country other than the United States or its territories that has a 

different definition of a defeat device, or substantially similar device, for the purposes of this 

provision, that definition shall govern. 

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II. PROHIBITION AGAINST MISREPRESENTATIONS 

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, agents, employees, 

and attorneys, and all other persons in active concert or participation with any of them, who 

receive actual notice of this Order, whether acting directly or indirectly, in connection with 

advertising, marketing, offering for sale, selling, offering for lease, leasing, or distributing any 

good or service, are permanently restrained and enjoined from, expressly or by implication, 

including through the use of a product name, endorsement, depiction, or illustration, materially: 

A. Misrepresenting or assisting others in misrepresenting that the product or service 

has low emissions, lower emissions than other vehicles, or a specific level(s) of emissions; 

B. Misrepresenting or assisting others in misrepresenting that the product or service 

is environmentally friendly, eco-friendly, green, or words of similar import; 

C. Misrepresenting or assisting others in misrepresenting that the product or service 

complies with any United States, state, or local emissions standard or regulation; 

D. With respect to environmental or engineering attributes, misrepresenting or 

assisting others in misrepresenting the degree to which the product or service maintains its resale 

value, comparative resale value, or any specific resale value; or 

E. Misrepresenting or assisting others in misrepresenting any other environmental 

attribute or the value of a product or service. 

III. MEANS AND INSTRUMENTALITIES 

IT IS FURTHER ORDERED that Defendant, Defendant’s officers, agents, employees, 

and attorneys, and all other persons in active concert or participation with any of them, who 

receive actual notice of this Order, whether acting directly or indirectly, in connection with 

advertising, marketing, offering for sale, selling, offering for lease, leasing, or distributing any 
 

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good or service are permanently restrained and enjoined from providing to others the Means and 

Instrumentalities with which to make any representation prohibited by Section II above. 

IV. MONETARY JUDGMENT 

IT IS FURTHER ORDERED that the Court enters Judgment in the amount of ten billion 

and thirty-three million dollars ($10,033,000,000.00) against Defendant and in favor of the FTC. 

Defendant shall satisfy the Judgment fully by establishing a Funding Pool in this amount, and 

making the payments to consumers required by Sections VII, VIII, IX, X, and XI of this Order. 

Defendant may use satisfaction of this Order to meet its obligations under the DOJ Consent 

Decree and/or the Class Action Settlement Agreement to the extent provided for in those 

settlements. 

V. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. Defendant relinquishes dominion and all legal and equitable right, title, and 

interest in all assets transferred pursuant to this Order to any Eligible Consumer and may not 

seek the return of any assets. 

B. The facts alleged in the Complaint will be taken as true, without further proof, in 

any subsequent civil litigation by or on behalf of the FTC to enforce its rights to any payment or 

monetary judgment pursuant to this Order, such as a nondischargeability complaint in any 

bankruptcy case. 

C. The facts alleged in the Complaint establish all elements necessary to sustain an 

action by the FTC pursuant to Section 523(a)(2)(A) of the Bankruptcy Code, 11 U.S.C. 

§ 523(a)(2)(A), and this Order will have collateral estoppel effect for such purposes. 

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D. Upon the filing of a petition for relief under the Bankruptcy Code by or against 

Defendant, or the filing of any similar federal or state insolvency proceeding by or against 

Defendant, the amount of $10,033,000,000, less (i) $42,670,723 earmarked for payment of loan 

balances with excess negative equity as of the date of the preliminary approval of this Order (but 

only to the extent of payments actually made), (ii) $26,000,000 earmarked to pay a portion of the 

remaining future lease payments previously owed to lessors by lessees opting for Lease 

Termination (but only to the extent of payments actually made), and (iii) the sum of the total 

amount of all Consumer Payments Defendant has made to benefit Eligible Consumers, shall 

become immediately due and payable. 

E. Within 10 business days of the Effective Date, Defendant shall fund the Escrow 

Account, which is the sole escrow account created under the Settlement Program, with the 

“Funding Amount,” which funds shall be used, as necessary, for the sole purpose of 

compensating consumers who submit valid claims under the Settlement Program. The initial 

Funding Amount shall be $1,500,000,000. If and when the funding level of the Escrow 

Account reaches the “Minimum Balance,” which shall initially be set at $1,250,000,000, the 

Escrow Agent shall alert Defendant, and Defendant shall, within 7 business days, deposit such 

funds in the Escrow Account as are necessary to bring the balance back to the Funding Amount. 

F. Every 6 months after the Escrow Account is first funded, the Funding Amount 

shall be adjusted to the lower of (i) the initial amount of $1,500,000,000 or (ii) 25% of the 

amount of the total Funding Pool that has not yet been spent, as verified by the Claims 

Supervisor. In the event that the Funding Amount is adjusted, the minimum balance shall be 

adjusted proportionately. For example, if the Funding Amount is adjusted to $900,000,000, the 

Minimum Balance shall be adjusted to $750,000,000. 
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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G. Within 30 days of the deadline for Eligible Consumers to submit claims under the 

Settlement Program, any funds in the Escrow Account, including all interest accrued, shall revert 

to Defendant. 

H. In the event that the Escrow Agreement terminates or is terminated for any reason 

prior to the deadline for Eligible Consumers to submit claims under the Settlement Program, any 

funds in the Escrow Account, including all interest accrued, shall revert to Defendant. 

I. Defendant must make all payments in accordance with this Order, provided that 

Defendant need not make these payments to those consumers who elect not to participate in the 

Settlement Program and are therefore eligible for the remedies set forth in Subsection 5.1 of 

Appendix A to the DOJ Consent Decree. 

VI. NOTICE 

IT IS FURTHER ORDERED that Defendant shall provide notice to Eligible Consumers 

of their rights under this Order as follows: 

A. Defendant shall make every reasonable effort to obtain mailing and email 

addresses of all Eligible Consumers, including by requesting available data from third parties. 

B. Within 5 business days of the Effective Date, Defendant shall send the notice in 

Attachment 4, or as otherwise agreed to in writing by the FTC, to each Eligible Consumer. 

Defendant shall send the notice in Attachment 4 to each Eligible Consumer for whom Defendant 

has a mailing address by First-Class postage pre-paid mail. The notice shall not contain anything 

other than Attachment 4, unless otherwise agreed to by the FTC in writing. 

C. Defendant will mail the notice in Subsection B in an 81⁄2 x 11-inch envelope. The 

envelope shall contain the following format and text, unless otherwise approved by the FTC. 

The front of the envelope shall contain the Volkswagen or Audi logo and the following clear and 
 

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conspicuous text, as applicable: “Volkswagen Settlements: Your Options” or “VW/Audi 

Settlements: Your Options.” The back of the envelope shall contain a large “Volkswagen” or 

“Audi” logo and the following clear and conspicuous text, as applicable: 

1.	 “Information about your options under Volkswagen’s Settlements” and 

“www.VWCourtSettlement.com”; or 

2.	 “Information about your options under VW/Audi Settlements” and 

“www.VWCourtSettlement.com”. 

Defendant may not place any other information on the envelope other than that necessary to 

ensure delivery (such as consumer name, address and postage). 

D. Within 5 business days of the Effective Date, Defendant shall send by email an 

html version of the notice in Attachment 4 in the body of an email (not as an attachment) to each 

Eligible Consumer for whom Defendant has an email address. The email notice shall be 

substantially the same in text, format, and font as Attachment 4, and shall not contain any other 

information. 

E. Within 5 business days of the Effective Date, Defendant shall distribute to all 

Volkswagen Dealers the notice in Attachment 5. 

F. Immediately upon the Effective Date, Defendant shall post links to the websites 

created pursuant to Section XIII on the landing pages of www.vw.com and www.audiusa.com. 

The link must appear on the top portion of the webpage (so that no scrolling is required to view 

the text) and must state “Visit VWCourtSettlement.com for information on the TDI Settlement” 

or “TDI Settlement.” Any intermediate webpages, disclosures, or text related to the TDI 

Settlement between the landing pages of www.vw.com and www.audiusa.com and the websites 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

 [Proposed] Partial Stipulated Order for Permanent Injunction and Monetary Judgment
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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pursuant to Section XIII shall be approved by the FTC. The links shall remain posted for the 

duration of the Settlement Program. 

G. Defendant shall place advertisements in major national media outlets reasonably 

calculated to notify Eligible Consumers of their eligibility for compensation. 

H. At least 180 days prior to December 30, 2018, Defendant shall send every 

Eligible Consumer that has not elected a remedy or scheduled an appointment pursuant to 

Section XIII a notice by at least two different means reasonably calculated to reach the consumer 

(such as mail and email, or email and phone) (“Reminder Notice”). The Reminder Notice shall 

inform such Eligible Consumers of the deadlines to file a claim application and/or schedule an 

appointment in order to receive compensation pursuant to this Order and shall direct them to the 

claims website governed by Section XIII. At least 150 days prior to December 30, 2018, 

Defendant shall send a second Reminder Notice to those Eligible Consumers who have not yet 

submitted a claim application or scheduled an appointment pursuant to Section XIII following 

the first Reminder Notice. 

I. Within 10 business days of Defendant receiving EPA or CARB approval of any 

Approved Emissions Modification in accordance with Appendix B of the DOJ Consent Decree, 

Defendant shall send by First-Class postage pre-paid mail notice to Eligible Owners and Eligible 

Lessees informing them that there is an Approved Emissions Modification available for their 

Eligible Vehicle. Such notice shall be in a form approved by EPA or CARB pursuant to Section 

3.2 of Appendix A to the DOJ Consent Decree. Such notice shall disclose the impacts of the 

Approved Emissions Modification on an Eligible Vehicle and inform affected Eligible 

Consumers that they still have a right to elect a Buyback or Lease Termination, as described in 

Sections VII and VIII. 
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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J. Within 10 business days of Defendant (a) receiving a final notice of disapproval 

of a proposed emissions modification from EPA or CARB, (b) withdrawing any application for 

an Approved Emissions Modification, or (c) declining to submit any such application in 

accordance with Appendix B of the DOJ Consent Decree, Defendant shall send by First-Class 

postage pre-paid mail notice to Eligible Owners and Eligible Lessees that the proposed emissions 

modification for the affected Eligible Vehicles is not available. Such notice shall be in a form 

approved by EPA or CARB pursuant to Section 3.2 of Appendix A to the DOJ Consent Decree. 

Such notice shall inform affected Eligible Consumers that they still have a right to elect a 

Buyback or Lease Termination, as described in Sections VII and VIII. 

K. Notwithstanding any other provision of this Order, with respect to all consumerfacing written, published, or online notices, internet content, disclosures, and disclaimers 

required under this Order, except those with substance uniquely tailored to an individual 

consumer (such as an email response to a particular consumer’s question), those sent pursuant to 

Federal Rule of Civil Procedure 23, or a DOJ Emissions Modification Notice, Defendant must 

seek FTC approval of the communications. Defendant must either: 

1.	 Obtain FTC approval in writing; or 

2.	 Ensure that the communications: (a) are accurate, complete, nonmisleading, and convey all material information; (b) convey all material 

information clearly and conspicuously; (c) emphasize (through 

underscoring, bolding, or other attention-getting devices) any deadlines 

that the consumer must meet; (d) use plain language; and (e) include an 

email address, web location, and telephone number where consumers can 

have questions answered. 
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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Case 3:15-md-02672-CRB Document 1607 Filed 06/28/16 Page 19 of 47
 

VII. COMPENSATION FOR BUYBACK OF ELIGIBLE VEHICLES 

IT IS FURTHER ORDERED that for each Eligible Owner who elects a Buyback, 

Defendant shall pay that Eligible Owner as set forth in this Order and Appendix A of the DOJ 

Consent Decree: 

A. Upon submission of an Eligible Owner’s complete and valid claim application 

pursuant to Section XIII and surrender of the right, title, and interest in, and possession of, an 

Eligible Vehicle to Defendant at a Volkswagen Dealer (or other entity authorized by Defendant), 

Defendant shall pay to the Eligible Owner all amounts required by Subsections D, E, and F. If 

an Eligible Owner elects a Buyback but does not possess title to the Eligible Vehicle, for title to 

the Eligible Vehicle to be transferred to Defendant, the Eligible Owner and Defendant must 

complete the steps required by Subsection G.1 and the claim application pursuant to Section 

XIII. 

B. Except as provided in Section XII, Defendant will complete a Buyback of an 

Eligible Vehicle within 90 days of an Eligible Owner’s election to schedule an appointment for 

an approved Buyback. 

C. Each Eligible Owner may, in the alternative, elect to receive an Approved 

Emissions Modification and obtain Approved Emissions Modification Restitution pursuant to 

Section IX at any time before Defendant takes possession, title, and ownership of the Eligible 

Vehicle. 

D. Except as provided in Subsection F and G, and except for Eligible Owners who 

purchased their Eligible Vehicles after September 18, 2015 but before June 28, 2016, Defendant 

shall pay each Eligible Owner who elects to participate in the Buyback the sum of: 

1. The Buyback Restitution; 
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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2.	 Less any amounts paid to a lender in satisfaction of a Loan Obligation on 

the Eligible Vehicle pursuant to Subsection G, if applicable. 

E. For Eligible Owners who purchased their Eligible Vehicles after September 18, 

2015 but before June 28, 2016, Defendant shall pay each Eligible Owner who elects to 

participate in the Buyback the sum of: 

1.	 The Post-September 2015 Owner Restitution; 

2.	 The Post-September 2015 Owner Adjustment, if any; 

3.	 Less any amounts paid to a lender in satisfaction of a Loan Obligation on 

the Eligible Vehicle pursuant to Subsection G, if applicable. 

F. For any Eligible Owner with an Eligible Vehicle that is Operable as of the date set 

by the Court for consumers to opt out of the Class Action or the Effective Date, whichever is 

earlier, but which ceases to be Operable before the vehicle can be brought in for a Buyback, 

upon submission of an Eligible Owner’s complete and valid claim application pursuant to 

Section XIII and surrender of all right, title, and interest in, and possession of, the Eligible 

Vehicle to Defendant at a Volkswagen Dealer (or other entity authorized by Defendant), 

Defendant shall pay Eligible Owner Non-Operable Restitution to the Eligible Owner. If an 

Eligible Owner does not possess title to the Eligible Vehicle, for title to the Eligible Vehicle to 

be transferred to Defendant, the Eligible Owner and Defendant must complete the steps required 

by Subsection G.1 and the claim application pursuant to Section XIII. 

G. For any Eligible Owner with an outstanding Loan Obligation for an Eligible 

Vehicle who elects a Buyback: 

1. Upon submission of an Eligible Owner’s complete and valid claim 

application pursuant to Section XIII and surrender of all right, title, and 
 

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interest in, and possession of, an Eligible Vehicle to an entity authorized 

by Defendant, Defendant shall pay that Eligible Owner’s lender the full 

amount required to pay off the outstanding Loan Obligation for the 

Eligible Vehicle, excluding any portion of the Loan Obligation that 

becomes delinquent after June 28, 2016 (and any related costs and fees) or 

any portion of the Loan Obligation, including new loans, incurred after 

June 28, 2016, up to 130% of the total compensation due to an Eligible 

Owner pursuant to Subsections D or E. If the amount paid to the lender by 

Defendant under this provision is not sufficient to satisfy the outstanding 

Loan Obligation, the Eligible Owner must, at the time of the transfer of 

ownership and possession, pay any remaining balance of the Loan 

Obligation required to transfer all interest in, title to, and ownership and 

possession of the Eligible Vehicle to Defendant to elect the Buyback. 

2.	 If the outstanding Loan Obligation is less than or equal to the total 

compensation to an Eligible Owner pursuant to Subsections D or E, upon 

submission of an Eligible Owner’s complete and valid claim application 

pursuant to Section XIII and surrender of all right, title, and interest in, 

and possession of, an Eligible Vehicle to Defendant at a Volkswagen 

Dealer (or other entity authorized by Defendant), Defendant shall pay that 

Eligible Owner’s lender the full amount required to pay off the 

outstanding Loan Obligation for the Eligible Vehicle, and shall pay the 

Eligible Owner the difference between the Loan Obligation and the 

compensation under Subsections D or E. 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

 [Proposed] Partial Stipulated Order for Permanent Injunction and Monetary Judgment
 

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3.	 Defendant shall not charge Eligible Owners any consideration, including 

transactional or other fees, costs, or penalties for making the payments 

required by this Subsection. Early termination or similar fees pursuant to 

or permitted by any Eligible Owner’s contract with an affiliate of 

Defendant, including VW Credit, Inc., are not part of the Loan Obligation 

for purposes of Subsections G.1 and G.2 above, and Defendant may not 

use them as a basis to reduce the payments due to an Eligible Owner under 

this Section. 

VIII. LEASE TERMINATION AND LESSEE COMPENSATION 

IT IS FURTHER ORDERED that for each Eligible Lessee who has an active lease and 

who elects a Lease Termination, Defendant shall pay that Eligible Lessee as set forth in this 

Order and Appendix A of the DOJ Consent Decree: 

A. Upon submission of an Eligible Lessee’s complete and valid claim application 

pursuant to Section XIII and surrender of an Eligible Vehicle to Defendant at a Volkswagen 

Dealer (or other entity authorized by Defendant), Defendant shall pay Eligible Lessee Restitution 

to the Eligible Lessee. Defendant shall pay all amounts necessary to achieve a Lease 

Termination without penalty to the Eligible Lessee, including, without limitation, early 

termination fees owed to third parties. Provided, however, that Defendant shall not be obligated 

to pay any Eligible Lessee Restitution Adjustments. When calculating excess mileage fees, 

Defendant cannot pro rate the actual mileage on the Eligible Vehicle on the day of vehicle 

surrender, but must compare such actual mileage to that allowed under the full lease term. 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

 [Proposed] Partial Stipulated Order for Permanent Injunction and Monetary Judgment
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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Case 3:15-md-02672-CRB Document 1607 Filed 06/28/16 Page 23 of 47
 

B. Except as provided in Section XII, Defendant shall complete a Lease Termination 

of an Eligible Vehicle within 45 days of an Eligible Lessee’s election to schedule an appointment 

for an approved Lease Termination. 

C. Defendant will assume any remaining lease payments from the date of the 

completion of the process in Subsection A through the end of the lease agreement. 

IX. COMPENSATION FOR APPROVED EMISSIONS MODIFICATIONS OF 

ELIGIBLE VEHICLES 

IT IS FURTHER ORDERED that for each Eligible Owner or Eligible Lessee who is 

entitled to elect and elects an Approved Emissions Modification, Defendant shall provide free 

Approved Emissions Modifications that fully comply with this Order and Appendix B of the 

DOJ Consent Decree, and shall provide compensation as follows: 

A. Upon submission of an Eligible Owner’s or Eligible Lessee’s complete and valid 

claim application pursuant to Section XIII and completion of an Approved Emissions 

Modification by a Volkswagen Dealer (or other entity authorized by Defendant), Defendant shall 

pay the amounts required by Subsections B through E. 

B. Except for Eligible Owners who purchased Eligible Vehicles after September 18, 

2015 but before June 28, 2016, Defendant shall pay Approved Emissions Modification 

Restitution to an Eligible Owner who elects to receive an Approved Emissions Modification. 

C. For Eligible Owners who purchased the Eligible Vehicle after September 18, 

2015 but before June 28, 2016, and who elect to receive an Approved Emissions Modification, 

Defendant shall pay Post-September 2015 Owner Restitution to each such Eligible Owner. 

D. For Eligible Owners or Eligible Lessees of Generation 3 Eligible Vehicles who 

elect an Approved Emissions Modification, Defendant shall pay the Approved Emissions 

Modification Restitution amount in two stages in accordance with Section XIII.I. 
 

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E. Defendant shall pay Lessee Restitution to each Eligible Lessee who elects to 

receive an Approved Emissions Modification and at the time the Eligible Vehicle is brought in 

for an Approved Emissions Modification (a) is the current lessee of an Eligible Vehicle and 

elects to continue an active lease for an Eligible Vehicle or (b) owns the Eligible Vehicle but did 

not acquire ownership of the Eligible Vehicle until after June 28, 2016. 

F. Except as provided in Section XII, Defendant shall complete an Approved 

Emissions Modification within 90 days of an Eligible Owner’s or Eligible Lessee’s election to 

schedule an appointment for an Approved Emissions Modification, following approval by EPA 

and CARB of an Approved Emissions Modification. 

G. Defendant shall provide a loaner vehicle at no cost to the consumer for any 

Approved Emissions Modification that is scheduled to take longer than 3 hours or that is not 

complete within 3 hours of the scheduled start of the appointment. Defendant shall provide 

consumers receiving an Approved Emissions Modification such loaner vehicles at no cost for 24 

hours after Defendant notifies them that the Approved Emissions Modification is complete. 

X.	 COMPENSATION FOR ELIGIBLE LESSEES WHOSE LEASES TERMINATED 

AFTER SEPTEMBER 18, 2015 

IT IS FURTHER ORDERED that for any Eligible Lessee who had an active lease as of 

September 18, 2015 but whose lease has since terminated and who returns or returned the 

Eligible Vehicle at the conclusion of the lease, upon submission of the Eligible Lessee’s 

complete and valid claim application pursuant to Section XIII, Defendant shall pay Lessee 

Restitution to such an Eligible Lessee. 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

 [Proposed] Partial Stipulated Order for Permanent Injunction and Monetary Judgment
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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XI. COMPENSATION FOR ELIGIBLE SELLERS 

IT IS FURTHER ORDERED that Defendant shall provide compensation to Eligible 

Sellers as follows: 

A. Upon submission of an Eligible Seller’s complete and valid claim application 

pursuant to Section XIII, Defendant shall pay Eligible Seller Restitution to each Eligible Seller 

who elects to participate in the Settlement Program. 

B. Eligible Sellers shall have 45 days to file a claim from the earlier of the date on 

which the Court grants preliminary approval of the Class Action Settlement Agreement or 

provision of notice pursuant to Section VI, provided however, if preliminary approval is granted 

by the Court on July 26, 2016, Eligible Sellers will have until September 16, 2016 to submit a 

claim. 

C. In no event will Defendant pay more for a single vehicle than the amount 

allocated to that vehicle for a Buyback, if the Eligible Owner chooses a Buyback, or an 

Approved Emissions Modification, if the Eligible Owner chooses an Approved Emissions 

Modification. No additional funds will be made available by Defendant to compensate Eligible 

Sellers. 

XII. WARRANTY AND LEMON LAW PROTECTION FOR MODIFIED VEHICLES 

IT IS FURTHER ORDERED that Defendant shall provide an Emission Control System 

warranty and an Engine Long Block warranty (collectively, the “Extended Emissions Warranty”) 

for each Eligible Vehicle that undergoes an Approved Emissions Modification (“Modified 

Vehicles”): 

A. The Extended Emissions Warranty shall cover all parts and labor, as well as the 

cost or provision of a loaner vehicle for warranty service lasting longer than 3 hours. Defendant 
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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must not impose on consumers any fees or charges, and must pay any fees or charges imposed by 

Volkswagen Dealers related to the warranty service. 

B. The Emissions Control System warranty must cover all components which are 

replaced as part of the Approved Emissions Modification and any component which can 

reasonably be impacted by effects of the Approved Emissions Modification in accordance with 

Sections 3.9.1 and 4.3.10 of Appendix B of the DOJ Consent Decree, such as increased thermal 

load or cycling, increased soot load, increased use of EGR, increased DPF regeneration, and 

increased fuel injection pressure. The Emission Control System warranty shall cover the 

following parts, as further specified in the applicable Extended Emissions Warranty Parts 

Coverage List that Volkswagen AG or Audi AG will submit with each emissions modification 

proposal submitted to EPA/CARB for review and approval of any proposed emissions 

modification: 

1.	 The entire exhaust after treatment system, including the DOC, the SCR 

catalyst (if applicable), the dosing injector and other DEF system 

components (if applicable), the NOx trap (if applicable), all sensors and 

actuators, and the exhaust flap; 

2.	 The entire fuel system, including the fuel pumps, high pressure common 

rail, fuel injectors, and all sensors and actuators; 

3.	 EGR system including the EGR valve, EGR cooler, EGR filter, all related 

hoses and pipes, and all sensors and actuators; 

4.	 The turbocharger; 

5.	 The OBD System and any malfunctions detected by the OBD System 

other than those related to the transmission; and 
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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6.	 The DPF. 

C. The Extended Emissions Warranty shall cover each and every DPF that has failed 

as a result of implementing any Approved Emissions Modification except as provided in Section 

3.9.2 of Appendix B of the DOJ Consent Decree. 

D. The Engine Long Block warranty shall cover the engine sub-assembly that 

consists of the assembled block, crankshaft, cylinder head, camshaft, and valve train. 

E.	 The warranty period for the Extended Emissions Warranty shall be the longer of: 

1.	 Measured from the Eligible Vehicle’s initial sale or lease: (a) for 

Generation 1 and 2, 10 years or 120,000 miles, whichever comes first; or 

(b) for Generation 3, 10 years or 150,000 miles, whichever comes first; 

2.	 Measured from the date and mileage when an Approved Emissions 

Modification is implemented prior to any resale of the Eligible Vehicle: 4 

years or 48,000 miles, whichever comes first; or 

3.	 Measured from the date and mileage of the time of the first resale 

transaction after an Approved Emissions Modification: 4 years or 48,000 

miles, whichever comes first; provided, however, that Subsection E.3 

applies only to the first resale transaction after the modification to the first 

person who in good faith purchases the vehicle for purposes other than 

resale. 

F. Defendant shall make available online a searchable database in accordance with 

Section 3.9.6 of Appendix B of the DOJ Consent Decree that includes all Eligible Vehicles, and 

that includes all 2.0-liter vehicles possessed by Defendant, Volkswagen Dealers, or any dealer 

associated with Defendant, by which users, including Eligible Owners, Eligible Lessees, and 
 

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prospective purchasers, may conduct a free-of-charge search by vehicle VIN to determine 

whether the Extended Emissions Warranty and any additional warranty extensions apply to a 

specific vehicle. 

G. Defendant must also maintain a database in accordance with Section 3.9.7 of 

Appendix B of the DOJ Consent Decree that includes all Eligible Vehicles, and that includes all 

2.0-liter vehicles possessed by Defendant, Volkswagen Dealers, or any dealer associated with 

Defendant, by which Volkswagen Dealers and Defendant’s authorized service facilities shall 

search by vehicle VIN to determine whether the Extended Emissions Warranty and any 

additional warranty extensions apply to a specific Eligible Vehicle. 

H. If Defendant is required to provide additional warranty extensions pursuant to 

Appendix B of the DOJ Consent Decree, the additional warranty extensions shall extend the 

warranty periods specified in Subsection E. 

I. The Extended Emissions Warranty is associated with the vehicle, and remains 

available to any and all subsequent owners and operators. 

J. The Extended Emissions Warranty shall not supersede or void any outstanding 

warranty. To the extent there is a conflict in any provision(s) of this warranty and any 

outstanding warranty, that conflict shall be resolved to the benefit of the consumer. 

K. The Extended Emissions Warranty shall not modify, limit, or affect any state, 

local, or federal legal rights available to the owners. 

L. Any waiver of any provision of the Extended Emissions Warranty by an owner is 

null and void. 

M. Defendant must reoffer and provide a Buyback or Lease Termination to any 

Eligible Owner or Eligible Lessee of a Modified Vehicle in the event that, during the 18 months 
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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or 18,000 miles (whichever occurs first) following the completion of the Approved Emissions 

Modification (the “Reoffer Period”): 

1.	 Defendant fails to repair or remedy a confirmed mechanical failure or 

malfunction covered by the Extended Emissions Warranty and associated 

with the Approved Emissions Modification (a “Warrantable Failure”) after 

the Eligible Owner or Eligible Lessee physically presents the Modified 

Vehicle to a Volkswagen Dealer for repair of the Warrantable Failure and: 

a.	 the Warrantable Failure is unable to be remedied after making 4 

separate service visits for the same Warrantable Failure during the 

Reoffer Period; or 

b.	 the Modified Vehicle with the Warrantable Failure is out of service 

(in an inoperable condition) due to the Warrantable Failure for a 

cumulative total of 30 days during the Reoffer Period. For 

avoidance of doubt, a Modified Vehicle shall not be deemed “out 

of service” when, after diagnosing the Warrantable Failure, the 

Volkswagen Dealer (or other entity authorized by Defendant) 

returns or tenders the Modified Vehicle to the customer while the 

Volkswagen Dealer (or other entity authorized by Defendant) 

awaits necessary parts for the Warrantable Failure and the 

Modified Vehicle remains Operable. 

N. If any such consumer is entitled to elect and elects a Buyback or Lease 

Termination pursuant to Subsection M, the owner or lessee shall receive the Consumer Payments 

that he or she would have received under a Buyback or Lease Termination at the time the 
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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Eligible Owner or Eligible Lessee first requested the Approved Emissions Modification, less any 

Buyback Restitution, Approved Emissions Modification Restitution or Lessee Restitution 

amounts already received under the Settlement Program. No Eligible Owner or Eligible Lessee 

shall receive double-recovery of any portion of any Consumer Payment. 

XIII. CLAIMS PROCESSING 

IT IS FURTHER ORDERED that in implementing the remedies for consumers described 

by this Order: 

A. On the Effective Date, Defendant shall maintain a claims administration website 

with URLs: VWCourtSettlement.com and AudiCourtSettlement.com. The website shall have an 

“En Español” link to a Spanish website that consists of a fully translated version of 

VWCourtSettlement.com and AudiCourtSettlement.com. The website must be publically 

available on the Effective Date, and remain available for 5 years thereafter, or until all consumer 

relief under this Order is complete, whichever is earlier. In maintaining this website, Defendant 

shall make all reasonable efforts to cause the purchase of the rights to all websites whose URLs 

are common misspellings of these URLs to re-direct consumers to VWCourtSettlement.com and 

AudiCourtSettlement.com. The website shall: 

1.	 Be promoted by Defendant online, such as through banner ads, search 

engine ads or social media; 

2.	 Include a copy of this Order, the DOJ Consent Decree and all consumer 

notices required by this Order, except for the DOJ Emissions Modification 

Notices, which must be made available pursuant to Subsection A.5; 

3.	 Include plain language descriptions of the options available to consumers 

under this Order, including the information needed for Eligible Consumers 
 

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to make informed decisions about their election of remedies and all 

deadlines related to the election of any remedy under this Order and the 

Related Orders; 

4.	 Include information sufficient for consumers to determine if they may be 

Eligible Sellers; 

5.	 Include a copy of or link to the DOJ Emissions Modification Notices 

within 10 business days of receiving EPA/CARB notice of approval or 

disapproval, withdrawing any application for an Approved Emissions 

Modification or declining to submit an application for an Approved 

Emissions Modification. Provided, however, that nothing herein 

precludes Defendant from providing additional information concerning the 

effect an Approved Emissions Modification will have on an Eligible 

Vehicle; 

6.	 List the information and documentation that Eligible Consumers must 

submit to establish eligibility for a remedy under the Settlement Program, 

including instructions for obtaining and providing such information and 

submitting such documentation by electronic upload, fax, or mail; 

7.	 Explain to consumers how and where to locate a Vehicle Identification 

Number (VIN) for their vehicle; 

8.	 Provide a simple, easy-to-use mechanism for consumers to determine 

whether their vehicle is eligible for the Settlement Program by entering a 

VIN, and to determine the compensation to which they are entitled under 

each available option by entering their name, contact information 

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(including mailing address, telephone number and email), address of 

vehicle registration, VIN, current Eligible Vehicle mileage, and other 

information necessary to process the claim; 

9.	 Explain the specific effect that additional mileage will have on an Eligible 

Consumer’s compensation; 

10.	 Provide a simple, easy-to-use mechanism for consumers to elect to receive 

updates by email about the availability of, and reminders about, 

appointments for any remedy; the availability (or non-availability) of an 

Approved Emissions Modification for their vehicle; and the status of any 

claim, including additional documentation or other information needed to 

process the claim; 

11.	 Provide consumers with a simple mechanism to elect and apply for any 

remedy available to them, and for Eligible Consumers to schedule an 

appointment pursuant to Subsection C.4, below; and 

12.	 Not contain any promotional materials, any information other than that 

needed to comply with this Order, or anything that contradicts, mitigates, 

or is inconsistent with, the information required by this Section. 

B. On the Effective Date, Defendant shall establish a toll-free telephone number that 

shall remain available until all consumer relief under this Order is complete. With the exception 

of Holidays, Defendant shall ensure that the toll-free number is promptly answered seven days a 

week from 7:00 am eastern time to 11:00 pm eastern time by representatives that Defendant has 

adequately trained to accurately and clearly answer all reasonable consumer questions regarding 

the Settlement Program. 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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C. Defendant shall administer the claims administration process efficiently, 

expeditiously, and transparently, including by: 

1.	 Accepting claim applications and documentation submitted by mail, fax, 

and via the claims website; 

2.	 Processing all claims applications and, within 10 business days, or more 

quickly if reasonable, either (a) notifying consumers that their claim 

application is complete because it contains all information necessary to 

determine eligibility, or (b) notifying consumers of any claim application 

that is deemed deficient, the reasons for the deficiency, and providing 

clear instructions on how to cure it. If Defendant notifies a consumer that 

their claim application is deficient, Defendant shall have 10 business days 

from resubmission of the claims application to notify such consumer 

whether his or her application is complete; 

3.	 Notifying consumers whether they are eligible for their elected remedy 

within 10 business days, or more quickly if reasonable, of receiving a 

completed application; 

4.	 Immediately upon either notification that a consumer is eligible under 

Subsection C.3 above or the Effective Date, whichever is later, allowing 

that Eligible Consumer to schedule a Buyback, Lease Termination, or 

Approved Emissions Modification at any Volkswagen Dealer (or other 

entity authorized by Defendant) of the Eligible Consumer’s choosing. 

Defendant shall provide Eligible Consumers the ability to choose from at 

least three appointment dates, at different times of the day, on different 
 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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days of the week, each of which is within 90 days of notification under 

Subsection C.3 or the Effective Date, whichever is later. Defendant shall 

provide consumers with the ability to reschedule their appointment within 

90 days of the rescheduling date using the same process; 

5.	 Providing consumers with at least one reminder prior to their scheduled 

appointment; 

6.	 Allowing consumers to change their elected remedy at any time before the 

Eligible Consumer’s appointment for a Buyback or Lease Termination or 

service visit for an Approved Emissions Modification. If an Eligible 

Consumer changes their elected remedy, Defendant shall provide 

consumers with the ability to schedule their appointment for the newly 

chosen remedy within 90 days of the consumer notifying Defendant of the 

change in elected remedy using the process in Subsection C.4; 

7.	 Establishing reasonable procedures designed to provide a process for 

certain Eligible Consumers whose status creates an undue burden to 

participate in the claims process (due to military service overseas or 

government assignment overseas) by assigning their rights to participate in 

the Settlement Program on behalf of the Eligible Consumer upon 

providing acceptable proof of the military service overseas or government 

assignment overseas. 

8.	 Upon payment to each Eligible Consumer, providing an itemized receipt 

showing the amount paid to the consumer and any applicable adjustments 

pursuant to this Order as well as an explanation of any such adjustments; 
 

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9.	 Not requesting any information from any consumer beyond what is 

necessary to process a claim application; and 

10.	 Taking all reasonable efforts to protect data consumers provide for any 

purpose related to this Order. Defendant cannot use data provided by 

consumers for participation in the Settlement Program for any purpose 

other than implementing the Settlement Program. 

D. Defendant shall offer each Eligible Consumer who elects to participate in the 

Settlement Program the option to receive payment by check or by Electronic Funds Transfer 

(“EFT”). Defendant shall notify Eligible Consumers of the timing of each payment method as 

well as the specific impact that a positive or negative mileage adjustment will have on the timing 

of such payment. 

E. For Eligible Owners with an outstanding Loan Obligation, payment shall be sent 

to that Eligible Owner’s lender within 5 business days of completion of the Eligible Owner’s 

Buyback. 

F. For Eligible Owners who elect a Buyback, upon receipt of the title to the Eligible 

Vehicle by Defendant or a Volkswagen Dealer (or other entity authorized by Defendant) and the 

surrender of the Eligible Vehicle to a Volkswagen Dealer (or other entity authorized by 

Defendant), (i) an EFT shall be submitted within 3 banking days or (ii) a check shall be provided 

immediately at the time of the Buyback. Provided, however, for an Eligible Owner who has 

elected to receive payment by check, (a) if the vehicle is subject to a positive Mileage 

Adjustment, Defendant shall send an additional check within 3 banking days for the amount of 

the positive adjustment or (b) if the Eligible Vehicle is subject to a negative Mileage Adjustment, 

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a check will not be provided immediately and instead Defendant will issue and send a new check 

within 3 banking days for the adjusted amount. 

G. For Eligible Lessees who elect a Lease Termination, upon surrender of the 

Eligible Vehicle to a Volkswagen Dealer (or other entity authorized by Defendant), (i) an EFT 

shall be submitted within 3 banking days or (ii) a check shall be provided immediately at the 

time of surrender. If the vehicle is subject to a negative mileage adjustment pursuant to the lease 

contract, a check will not be provided immediately and instead Defendant will issue and send a 

new check within 3 banking days for the adjusted amount. 

H. For Eligible Owners or Eligible Lessees who elect an Approved Emissions 

Modification, upon completion of the Approved Emissions Modification by a Volkswagen 

Dealer (or other entity authorized by Defendant), (i) an EFT shall be submitted within 3 banking 

days or (ii) a check shall be mailed within 3 banking days. 

I. Provided however, that for Eligible Owners or Eligible Lessees of Generation 3 

Eligible Vehicles who elect an Approved Emissions Modification, upon completion of the first 

stage of the Approved Emissions Modification pursuant to Section 3.1 of Appendix B of the DOJ 

Consent Decree by a Volkswagen Dealer (or other entity authorized by Defendant), (i) an EFT 

shall be submitted within 3 banking days or (ii) a check shall be mailed within 3 banking days in 

the amount of 2/3 of the Approved Emissions Modification Restitution amount. Upon 

completion of the second stage of the Approved Emissions Modification pursuant to Section 

3.4.1 of Appendix B of the DOJ Consent Decree by a Volkswagen Dealer (or other entity 

authorized by Defendant), (i) an EFT shall be submitted within 3 banking days or (ii) a check 

shall be mailed within 3 banking days for the remaining 1/3 of the Approved Emissions 

Modification Restitution amount for the Eligible Vehicle. For Eligible Sellers, upon approval of 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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an Eligible Seller’s claim, (i) an EFT shall be submitted within 3 banking days or (ii) a check 

shall be mailed within 3 banking days. 

J. Through the claims administration process implemented pursuant to this Order, 

Defendant may not favor a remedy under this Order over any other remedy in any of the 

following ways: 

1.	 by presenting alternative remedies in a manner that discourages the 

selection of one remedy (or remedies); or 

2.	 by making the process to obtain a remedy unnecessarily difficult relative 

to others. 

K. Notwithstanding anything else in this Order, the Buyback and Lease Termination 

offers required under Sections VII and VIII of this Order, shall be available to Eligible Owners 

and Eligible Lessees beginning within 5 business days from the Effective Date and shall remain 

open until at least 2 years after the Effective Date. Provided, however, that an Eligible 

Consumer must complete a claims application no later than September 1, 2018 to participate in 

the Settlement Program. 

XIV. COURT-APPOINTED CLAIMS SUPERVISOR 

IT IS FURTHER ORDERED that based upon recommendations submitted to this Court 

by Defendant and the FTC, the Court hereby appoints Ankura Consulting Group, LLC as the 

Claims Supervisor for Defendant. In acting under this Order, the Claims Supervisor is an agent 

of this Court, and solely the agent of this Court, and shall be accountable directly to this Court. 

With the exception of review of claims pursuant to Subsection A, below, the Claims Supervisor 

shall not perform any of the claims processing functions set forth in Section XIII. The Claims 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

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Supervisor has the following power and authority to monitor Defendant’s compliance with the 

Settlement Program. 

A. The Claims Supervisor shall review claims for compensation under this Order and 

shall review the claims administration process to ensure that it is conducted in accord with this 

Order, including ensuring that: 

1.	 Compensation is calculated and paid in compliance with this Order; 

2.	 Claims are processed in an efficient and consistent manner; 

3.	 The calculations of approved payments to Eligible Consumers comply 

with the Settlement Program; and 

4.	 Determinations that claims are “ineligible” are proper under the 

Settlement Program. 

B. Within one month from the date of entry of this Order and every 3 months 

thereafter for 3 years (until such time determined pursuant to Subsection C below), the Claims 

Supervisor shall submit a report to the Court, with copies to the FTC and Defendant, concerning 

Defendant’s performance of its obligations under this Order, including: 

1.	 The progress of the Settlement Program, including but not limited to the 

participation rate in any Buyback, Lease Termination, or Approved 

Emissions Modification; 

2.	 The length of time for Eligible Consumers to receive any Consumer 

Payment; 

3.	 Any complaints regarding Eligible Consumers’ efforts to elect or 

participate in any Settlement Program option; and 

4.	 The Claims Supervisor’s review of ineligible claims. 
 

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C. The Claims Supervisor shall serve until December 31, 2018, unless ordered by 

this Court to continue. 

D. Defendant shall in a timely manner provide the Claims Supervisor full access to 

all documents and information necessary for the Claims Supervisor to fulfill the Claims 

Supervisor’s duties pursuant to this Order. 

E. Defendant shall fully cooperate with any reasonable request of the Claims 

Supervisor and shall take no action to interfere with or impede the Claims Supervisor’s ability to 

monitor Defendant’s compliance with this Order. 

F. The Claims Supervisor shall provide the FTC accounting or other information 

related to compliance with Sections VI through XIII within 10 business days of a request, unless 

a longer time is agreed to by an FTC representative in writing. 

G. Defendant is responsible for all costs and fees relating to the Claims Supervisor. 

Defendant and the FTC may agree, or the Claims Supervisor may seek Court approval to 

employ, at Defendant’s expense, such consultants, accountants, attorneys, and other 

representatives and assistants as are reasonably necessary to carry out the Claims Supervisor’s 

duties and responsibilities. 

XV. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Defendant obtain acknowledgments of receipt of this 

Order: 

A. Defendant, within 7 days of entry of this Order, must submit to the FTC an 

acknowledgment of receipt of this Order sworn under penalty of perjury. 

B. For 5 years after entry of this Order Defendant must deliver a copy of this Order 

to: (1) all principals, officers, directors; (2) all employees, agents, and representatives who have 
 

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responsibilities for any of Defendant’s advertising or marketing or have supervisory 

responsibilities related to the subject matter of Sections I through III; (3) all employees, agents, 

and representatives involved in carrying out the Settlement Program as described in Sections VI 

through XIII; and (4) any business entity resulting from any change in structure as set forth in 

Section XVI. Delivery must occur within 7 days of entry of this Order for current personnel. 

For all others, delivery must occur before they assume their responsibilities. 

C. From each individual or entity that Defendant employs and to which Defendant 

delivered a copy of this Order, Defendant will request, within 30 days, a signed and dated 

acknowledgment of receipt of this Order and Defendant shall create and maintain records 

sufficient to establish that the Order was sent in a way reasonably calculated to effect delivery. 

For all other individuals or entities to which Defendant delivered a copy of this Order pursuant to 

Subsection B, Defendant shall create and maintain records sufficient to establish that the Order 

was sent in a way reasonably calculated to effect delivery. 

XVI. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendant make timely submissions to the FTC: 

A. One year after entry of this Order, Defendant must submit a compliance report, 

sworn under penalty of perjury: 

1. Defendant must: (a) identify the primary physical, postal, and email 

address and telephone number, as designated points of contact, which 

representatives of the FTC may use to communicate with Defendant; 

(b) describe in detail whether and how Defendant is in compliance with 

each Section of this Order; and (c) provide a copy of each order 

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acknowledgment obtained pursuant to this Order, unless previously 

submitted to the FTC. 

B. For 10 years after entry of this Order, Defendant must submit a compliance 

notice, sworn under penalty of perjury, within 14 days of any change in the following: (a) any 

designated point of contact; or (b) the structure of any entity that Defendant has any ownership 

interest in or controls directly or indirectly that may affect compliance obligations arising under 

this Order, including: creation, merger, sale, or dissolution of the entity or any subsidiary that 

engages in any acts or practices subject to this Order. 

C. Defendant must submit to the FTC notice of the filing of any bankruptcy petition, 

insolvency proceeding, or similar proceeding by or against such Defendant within 14 days of its 

filing. 

D. Any submission to the FTC required by this Order to be sworn under penalty of 

perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I 

declare under penalty of perjury under the laws of the United States of America that the 

foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full 

name, title (if applicable), and signature. 

E. Any information Defendant submits pursuant to this section will be treated in 

accordance with Section 21 of the FTC Act. 

F. Unless otherwise directed by an FTC representative in writing, all submissions to 

the FTC pursuant to this Order must be emailed to DEbrief@ftc.gov or sent by overnight courier 

(not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer 

Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. 

The subject line must begin: FTC v. Volkswagen Group of America, Inc., X160039. 
 

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XVII. RECORDKEEPING 

IT IS FURTHER ORDERED that Defendant must create certain records for 10 years 

after entry of the Order, and retain each such record for 5 years. Specifically, Defendant must 

create and retain the following records: 

A. Accounting records showing the revenues from all goods or services sold in 

accordance with the International Financial Reporting Standards; 

B. Personnel records showing, for each person with responsibilities for any of 

Defendant’s advertising or marketing or with supervisory responsibilities related to the subject 

matter of Sections I through III, whether as an employee or otherwise, that person’s: name; 

addresses; telephone number; job title or position; dates of service; and (if applicable) the reason 

for termination; 

C. Records of all consumer complaints related to Sections I through III of this Order, 

whether received directly or indirectly, such as through a third party, and any response; 

D. All records necessary to demonstrate full compliance with Sections I through III 

of this Order, including all submissions to the FTC; 

E. A copy of each substantively unique new vehicle advertisements or other new 

vehicle marketing material Defendant distributed or paid to have distributed in the United States 

relating to Volkswagen or Audi vehicles (for purposes of this Subsection, an advertisement or 

marketing material is “substantively unique” if it conveys different claims than other material, or 

conveys claims differently than other material); and 

F. All materials relied upon to make any representation about an environmental 

attribute or resale value in the materials covered by Subsection E. 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, No. 3:15-md-2672 (CRB) (JSC) 

 [Proposed] Partial Stipulated Order for Permanent Injunction and Monetary Judgment

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Case 3:15-md-02672-CRB Document 1607 Filed 06/28/16 Page 43 of 47 

XVIII. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring Defendant’s compliance 

with this Order: 

A. Within 30 days of receipt of a written request from a representative of the FTC, 

Defendant must: submit additional compliance reports or other requested information, which 

must be sworn under penalty of perjury; appear for depositions; and produce documents for 

inspection and copying. The FTC also is authorized without further leave of court, to use any of 

the procedures prescribed by Federal Rules of Civil Procedure 29, 30 (including telephonic 

depositions), 31, 33, 34, 36, 45, and 69, provided that Defendant, after attempting to resolve a 

dispute without court action and for good cause shown, may file a motion with this Court 

seeking an order including one or more of the protections set forth in Federal Rule of Civil 

Procedure 26(c). Defendant may assert any and all rights or privileges in the Federal Rules of
 

Civil Procedure, the Federal Rules of Evidence, or any other applicable law. 

B. For matters concerning this Order, the FTC is authorized to communicate directly 

with Defendant. Defendant must permit representatives of the FTC to interview any employee 

or other person affiliated with any Defendant who has agreed to such an interview. The person 

interviewed may have counsel present. 

C. The FTC may use all other lawful means, including posing, through its 

representatives, as consumers, suppliers, or other individuals or entities, to Defendant or any 

individual or entity affiliated with Defendant, without the necessity of identification or prior 

notice. Nothing in this Order limits the FTC’s lawful use of compulsory process, pursuant to 

Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1. Defendant may assert any and all 

defenses, rights, or privileges available to it. 
 

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Case 3:15-md-02672-CRB Document 1607 Filed 06/28/16 Page 44 of 47 

XIX. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 

purposes of construction, modification, and enforcement of this Order. 

IT IS SO ORDERED. 

Dated: __________, 2016 

CHARLES R. BREYER 

United States District Judge 

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 [Proposed] Partial Stipulated Order for Permanent Injunction and Monetary Judgment
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