In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

[PROPOSED] AMENDED SECOND PARTIAL STIPULATED ORDER FOR PERMANENT INJUNCTION AND MONETARY RELIEF

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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). 

MDL No. 2672 CRB (JSC)

[PROPOSED] AMENDED

SECOND PARTIAL STIPULATED 

ORDER FOR PERMANENT 

INJUNCTION AND MONETARY 

JUDGMENT 

Hon. Charles R. Breyer

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

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

against Defendants Volkswagen Group of America, Inc. and Porsche Cars North America, Inc., 

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

The FTC and Defendants stipulate to the entry of this Stipulated Order for Permanent Injunction 

and Monetary Judgment (“Order”), which 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 Defendants participated in deceptive and/or 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, Audi, and Porsche 3.0-liter TDI vehicles in the United States and its territories.

3. Defendants neither admit nor deny any of the allegations in the Complaint, except 

as specifically stated in this Order. Only for purposes of this action, Defendants admit the facts 

necessary to establish jurisdiction. 

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4. This Order resolves all of the FTC’s allegations related to Defendants’ TDI 

vehicles, except that if the condition in Section II(F) is triggered, then this Order only resolves 

the FTC’s allegations in its Complaint against Defendants.

5. Defendants waive any claim that they 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 agree to bear their own costs and attorney fees. 

6. Defendants 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. “3.0L Class Action Settlement Agreement” means the proposed Consumer 

Class Action Settlement Agreement and Release filed on January 31, 2017, by the attorneys 

representing certain current and former owners and lessees of certain Volkswagen, Audi, and 

Porsche branded vehicles with 3.0-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, “3.0L Class Action Settlement Agreement” shall refer to that agreement as, and in 

the form it is, ultimately approved and entered by the Court. 

B. “3.0L Settlement Program” means the overall program, rights, and obligations 

created under this Order and the related 3.0L Class Action Settlement Agreement to provide 

notice and restitution to Eligible Consumers.

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

[PROPOSED] AMENDED SECOND PARTIAL STIPULATED ORDER FOR PERMANENT INJUNCTION AND MONETARY RELIEF

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C. “Approved Emissions Modification” or “AEM” means a modification to an 

Eligible Vehicle approved by the EPA and CARB in accordance with Appendix B of the DOJ 

3.0L Consent Decree.

D. “Approved Emissions Modification Restitution” or “AEM Restitution” means 

either Generation 1 Approved Emissions Modification Restitution or Generation 2 Approved 

Emissions Modification Restitution, depending on the Eligible Vehicle. 

E. “Bosch” means Bosch GmbH, Bosch LLC, and any entity controlled by or 

affiliated with the foregoing. 

F. “Bosch Consumer Class Action Settlement Agreement” means the proposed 

Consumer Class Action Settlement Agreement and Release filed on January 31, 2017 in this 

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

Litigation, No. 3:15-md-2672-CRB (N.D. Cal.) that (1) resolves disputes between consumer 

class members and Bosch, and (2) obligates Bosch to pay consumers at least $276,531,850. 

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

Vehicle to Defendants (or other entity authorized by Defendants) under the 3.0L Settlement 

Program in exchange for the applicable Generation 1 Buyback Restitution or Generation 2 

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

Defendants to acquire title and the Buyback to occur, Defendants and the Eligible Owner must 

complete the steps required by Section IV(G)(1) or Section X(G)(1) and the claim application 

pursuant to Section XVI. 

H. “CARB” means the California Air Resources Board. 

I. “Certified Emissions Repair” means an alteration to a Generation 2 Eligible 

Vehicle emissions system such that it: (1) meets Tier 2, Bin 5 pursuant to 40 C.F.R. § 1811-

Case 3:15-md-02672-CRB Document 3098-1 Filed 03/28/17 Page 3 of 63
In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

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04(c)(6), (f) and (j); (2) meets LEV II/ULEV pursuant to Cal. Code Regs. tit. 13, § 1961; and (3) 

has obtained final EPA and CARB approval. 

J. “Claims Supervisor” means Ankura Consulting Group, LLC. 

K. “Claims Website” is the website Volkswagen must operate pursuant to Section 

XVI of this Order and the 3.0L Class Action Settlement Agreement. Volkswagen may 

consolidate the Claims Website this Order requires with the website required by the FTC’s 

Partial Stipulated Order for Permanent Injunction and Monetary Judgment, filed on October 25, 

2016 (Docket No. 2104) (“2.0L FTC Order”), as long as the requirements of both Orders are 

met. 

L. “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). 

M. “Consumer Payment” means any payment under the 3.0L 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. 

N. “Covered Lessor” means VW Credit, Inc., Audi Financial Services, Inc., and 

Porsche Financial Services, Inc. 

O. “Dealer” means any of Defendants’ authorized Volkswagen, Audi, or Porsche 

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

Volkswagen Dealer Agreement, Audi Dealer Agreement, or Porsche Dealer Agreement. 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

[PROPOSED] AMENDED SECOND PARTIAL STIPULATED ORDER FOR PERMANENT INJUNCTION AND MONETARY RELIEF

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P. “Defendants” means collectively Volkswagen and Porsche, as defined herein. 

Q. “DOJ 3.0L Consent Decree” means the Proposed Second 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 December 20, 

2016. If the Court approves the Proposed Second Partial Consent Decree, “DOJ 3.0L Consent 

Decree” shall refer to that decree as, and in the form it is, ultimately approved and entered by the 

Court. 

R. “DOJ Emissions Modification Notice” means the notice(s) required by 

Subsections 3.1.2, 3.2.1, and 3.2.3 of Appendix A to the DOJ 3.0L Consent Decree to notify 

affected Eligible Owners and Eligible Lessees, for whom Defendants have a mailing or email 

address, of the availability or non-availability of an Approved Emissions Modification or 

Certified Emissions Repair for certain Eligible Vehicles.

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

DOJ 3.0L Consent Decree, or the 3.0L Class Action Settlement Agreement, whichever is latest. 

T. “Eligible Consumer” means any Eligible Owner, Eligible Lessee, Eligible 

Former Owner, or Post-September 2015 Purchaser, as defined by this Order, who has not 

excluded himself or herself from the 3.0L Settlement Program. Consumers who exclude 

themselves from the 3.0L Settlement Program are eligible for the remedies set forth in 

Subsections 5.1, 6.1, or 8.1 of Appendix A to the DOJ 3.0L Consent Decree. 

U. “Eligible Former Lessee” means the lessee who leased an Eligible Vehicle from 

a Covered Lessor as of September 18, 2015, and/or November 2, 2015, and who surrendered the 

Leased Eligible Vehicle on or before January 31, 2017. 

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V. “Eligible Former Owner” means a person who (a) 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 on or before January 31, 2017, or 

(b) purchased or otherwise acquired an Eligible Vehicle on or before November 2, 2015, and 

sold or otherwise transferred ownership of such vehicle after November 2, 2015, but on or before 

January 31, 2017. For avoidance of doubt, Eligible Former Owner includes any owner whose 

Eligible Vehicle was Totaled on or after September 18, 2015, but on or before January 31, 2017, 

and who consequently transferred title of their vehicle to an insurance company. 

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

with a lease issued by a Covered Lessor; (2) the former lessee or lessees of an Eligible Vehicle 

who had an active lease issued by a Covered Lessor at any point between September 18, 2015, 

and November 2, 2015, (inclusive) and who surrendered or surrenders the leased Eligible 

Vehicle to Defendants after January 31, 2017, but before the Program End Date; (3) the current 

owner of an Eligible Vehicle who had an active lease issued by a Covered Lessor at any point 

between September 18, 2015, and November 2, 2015, (inclusive) and who acquired ownership of 

the previously leased Eligible Vehicle at the conclusion of the lease after January 31, 2017; or 

(4) an Eligible Former Lessee. For avoidance of doubt, no person shall be considered an Eligible 

Lessee by virtue of holding a lease issued by a lessor other than a Covered Lessor. 

X. “Eligible Owner” means the owner or owners of an Eligible Vehicle on January 

31, 2017, or the owner or owners who acquire an Eligible Vehicle after January 31, 2017, but 

before the deadline to submit a claim under the 3.0L Settlement Program, except that the owner 

of an Eligible Vehicle who had an active lease issued by a Covered Lessor at any point between 

September 18, 2015, and November 2, 2015, (inclusive) and purchased the Eligible Vehicle 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

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previously leased by that owner after January 31, 2017, 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 after January 31, 2017; and a third party who acquires 

ownership of an Eligible Vehicle after January 31, 2017, thereby becomes an Eligible Owner if 

that third party otherwise meets the definition of an Eligible Owner, unless the third party 

acquired the Eligible Vehicle from an Eligible Lessee, in which case that third party will be an 

Eligible Lessee. 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 a Covered Lessor, 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 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 

or, if applicable, a Certified Emissions Repair and Repair Restitution. 

Y. “Eligible Vehicle” means Model Year 2009 through 2016 Volkswagen, Audi, or 

Porsche-branded light-duty vehicles equipped with 3.0-liter TDI engines that (1) are in the table 

immediately below this paragraph; (2) are registered with a state Department of Motor Vehicles 

or equivalent agency or held by bill of sale by a non-Volkswagen Dealer, non-Audi Dealer, or 

non-Porsche Dealer in the United States or its territories as of January 31, 2017; and (3) have not 

been modified pursuant to an Approved Emissions Modification or Certified Emissions Repair. 

Eligible Vehicle excludes any Volkswagen, Audi, or Porsche vehicle that was never sold or 

registered in the United States or its territories. A vehicle must be Operable to be considered an 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

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Eligible Vehicle for the purpose of the Buyback, Approved Emissions Modification, or Certified 

Emissions Repair.

Vehicle Make and Model Model Year

VW Touareg 2009-2016

Audi A6 quattro 2014-2016 

Audi A7 quattro 2014-2016 

Audi A8 2014-2016 

Audi A8L 2014-2016

Audi Q5 2014-2016 

Audi Q7 2009-2015 

Porsche Cayenne 2013-2016

Z. “EPA” means the United States Environmental Protection Agency. 

AA. “Extension Payment” means monetary compensation in the amount of $500 

Volkswagen will pay pursuant to Section VIII(D) in addition to any other restitution under this 

Order. Extension Payments may not be credited against any other obligation Volkswagen has 

under this Order. 

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

Volkswagen Touareg (2009-2012) and Audi Q7 (2009-2012).

CC. “Generation 1 Approved Emissions Modification Restitution” means the 

monetary compensation that Volkswagen will pay to Generation 1 Eligible Owners who elect an 

Approved Emissions Modification under the 3.0L Settlement Program, as specified in column B 

of Attachment 1, and modified by any Mileage Adjustment in Attachment 5. 

DD. “Generation 1 Buyback Restitution” means the monetary compensation that 

Volkswagen will pay to Generation 1 Eligible Owners who elect a Buyback under the 3.0L 

Settlement Program, as specified in column A of Attachment 1, and modified by any Mileage 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

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Adjustment in Attachment 5. Provided, however, that if that amount is less than the amount 

required by Appendix A of the DOJ 3.0L Consent Decree, then the Generation 1 Buyback 

Restitution shall be the amount required by the DOJ 3.0L Consent Decree. 

EE. “Generation 1 Eligible Lessee” means an Eligible Lessee whose Eligible Vehicle 

is Generation 1.

FF. “Generation 1 Eligible Owner” means an Eligible Owner whose Eligible 

Vehicle is Generation 1.

GG. “Generation 1 Former Owner Restitution” means the monetary compensation 

that Volkswagen will pay to Eligible Former Owners of a Generation 1 Eligible Vehicle who 

timely file a claim application under and participate in the 3.0L Settlement Program, in 

accordance with Section XIV, as specified in column C of Attachment 1. 

HH. “Generation 1 Lessee Restitution” means the monetary compensation that 

Volkswagen will pay to Generation 1 Eligible Lessees under the 3.0L Settlement Program, in 

addition to a Lease Termination or an Approved Emissions Modification, as specified in 

Attachment 2. 

II. “Generation 1 Totaled Vehicle Restitution” means the monetary compensation 

that Volkswagen will pay to Generation 1 Eligible Owners under the 3.0L Settlement Program 

whose vehicle is (i) Totaled; and (ii) transferred to an insurance company, as specified in column 

B of Attachment 1. 

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

Volkswagen Touareg (2013-2016), Audi A6 Quattro (2014-2016), Audi A7 Quattro (2014-

2016), Audi A8 (2014-2016), Audi A8L (2014-2016), Audi Q5 (2014-2016), Audi Q7 (2013-

2015), and Porsche Cayenne (2013-2016). 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

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KK. “Generation 2 Adjustment” means the monetary compensation that, if required 

under Section XIV, Volkswagen will pay to Eligible Former Owners of Generation 2 Eligible 

Vehicles. The Generation 2 Adjustment amount will be the difference between the amount 

specified in column D of Attachment 3 and 50% of the Repair Restitution. 

LL. “Generation 2 Approved Emissions Modification Restitution” means the 

monetary compensation that, if triggered by Section VIII(E), Volkswagen will pay to 

Generation 2 Eligible Owners who elect an Approved Emissions Modification under the 3.0L 

Settlement Program, as specified in column C of Attachment 3, and modified by any Mileage 

Adjustment in Attachment 5.

MM. “Generation 2 Buyback Restitution” means the monetary compensation that, if 

triggered by Section VIII(E), Volkswagen will pay to Generation 2 Eligible Owners who elect a 

Buyback under the 3.0L Settlement Program, as specified in column B of Attachment 3, and 

modified by any Mileage Adjustment in Attachment 5. Provided, however, that if the total 

Generation 2 Buyback Restitution is less than the amount required by Appendix A of the DOJ 

3.0L Consent Decree, it shall be the amount required by the DOJ 3.0L Consent Decree. 

NN. “Generation 2 Eligible Lessee” means an Eligible Lessee whose Eligible Vehicle 

is Generation 2.

OO. “Generation 2 Eligible Owner” means an Eligible Owner whose Eligible 

Vehicle is Generation 2.

PP. “Generation 2 Lessee Restitution” means the monetary compensation, that, if 

triggered by Section VIII(E), Volkswagen will pay to Generation 2 Eligible Lessees, in addition 

to a Lease Termination or an Approved Emissions Modification, as specified in column A of 

Attachment 4.

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QQ. “Generation 2 Participation Payment” means 50% of (1) the Repair 

Restitution, (2) Lessee Repair Restitution, or (3) Post-September 2015 Purchaser Restitution 

whichever is applicable. 

RR. “Generation 2 Totaled Vehicle Restitution” means the monetary compensation 

that Volkswagen will pay to Generation 2 Eligible Owners under the 3.0L Settlement Program 

whose vehicle is Totaled and cannot be brought in for a Certified Emissions Repair, AEM, or a 

Buyback. If the Eligible Vehicle would have otherwise qualified for a Buyback or AEM, the 

Generation 2 Totaled Vehicle Restitution is the amount specified in column C of Attachment 3. 

If the Eligible Vehicle would have otherwise received a Certified Emissions Repair if it had not 

been Totaled, the Generation 2 Eligible Owner will still receive Repair Restitution. 

SS. “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.

TT. “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 VI(A) and Section XIII(A). 

UU. “Lessee Repair Restitution” means the monetary compensation Volkswagen will 

pay to Generation 2 Eligible Lessees who receive a Certified Emissions Repair, which is $3,200 

for each Generation 2 Eligible Vehicle, reflecting the total payments by both Volkswagen and 

Bosch, or $2,000 if the condition in Section II(F) applies. 

VV. “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 

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amounts due, such as delinquent lease payments and related late payment fees, or costs 

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

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

by an Eligible Vehicle, regardless of the lender.

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

specified in Attachment 5.

YY. “Operable” means that the vehicle so described can be legally driven on a public 

road under its own 3.0-liter TDI engine power. A vehicle is not Operable if: (a) it has 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, salvage yard, 

or salvage dealer after September 18, 2015; or (b) has undergone intentional physical or 

mechanical stripping or removal of any OEM equipment or parts accounted for in the Buyback 

Restitution, including, but not limited to, removal of lights, wheels, wheel covers, seats, radios, 

or navigation systems; or (c) has been intentionally damaged, vandalized, or otherwise altered 

for no legitimate purpose in a manner that reduces the vehicle’s value as calculated in the 

Buyback Amount, prior to participation in the Settlement Program. 

ZZ. “Porsche” means Porsche Cars North America, Inc., as well as its successors and 

assigns

AAA. “Post-September 2015 Purchaser” means an Eligible Owner who purchased a 

used vehicle after September 18, 2015, and remains the owner at the time of electing a Buyback, 

Certified Emissions Repair, or Approved Emissions Modification, except that former lessee 

owners of an Eligible Vehicle who purchased that Eligible Vehicle off lease on or before January 

31, 2017, will not be considered Post-September 2015 Purchasers. 

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BBB. “Post-September 2015 Purchaser Restitution” means the monetary 

compensation that Volkswagen will pay to Post-September 2015 Purchasers who elect a 

Buyback, Certified Emissions Repair, or Approved Emissions Modification under the 3.0L 

Settlement Program. If an Eligible Former Owner files a claim, the Post-September 2015 

Purchaser Restitution is equal to (1) the Buyback Restitution less 50% of the Approved Emission 

Modification Restitution for a Buyback; (2) 50% of the Repair Restitution for a Certified 

Emissions Repair; or (3) 50% of the Approved Emissions Modification Restitution for an AEM, 

for the Eligible Vehicle, modified by any Mileage Adjustment in Attachment 5. If an Eligible 

Former Lessee timely files a valid claim, the Post-September 2015 Purchaser Restitution is equal 

to: (1) the Buyback Restitution less 50% of the Approved Emission Modification Restitution for 

a Buyback; (2) the Repair Restitution less $2,750 for a Certified Emissions Repair (or less 

$2,000 if the condition in Section II(F) applies); or (3) 50% of the Approved Emission 

Modification Restitution for an AEM, for the Eligible Vehicle, modified by any Mileage 

adjustment in Attachment 5. If neither an Eligible Former Owner nor an Eligible Former Lessee 

timely files a valid claim, the Post-September Purchaser Restitution is equal to 100% of: (1) the 

Buyback Restitution for a Buyback; (2) the Repair Restitution for a Certified Emissions Repair; 

or (3) the Approved Emissions Modification Restitution for an AEM, for the Eligible Vehicle, 

modified by any Mileage Adjustment in Attachment 5. Provided, however, that if the total PostSeptember 2015 Purchaser Restitution is less than the amount required by Appendix A of the 

DOJ 3.0L Consent Decree, it shall be the amount required by the DOJ 3.0L Consent Decree. 

CCC. “Program End Date” means two years after the last Repair Approval Date or the 

Effective Date, whichever comes earlier. 

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DDD. “Reduced Performance” means a change in any of the following performance 

attributes: (1) a reduction in calculated fuel economy using the EPA formula of over 3 MPG; 

(2) a decrease of greater than 5% in peak horsepower; or (3) a decrease of greater than 5% in 

peak torque. 

EEE. “Related Orders” means the DOJ 3.0L Consent Decree and 3.0L Class Action 

Settlement Agreement.

FFF. “Repair Approval Date” means October 23, 2017, for Subgroup Generation 2.2 

SUV; November 8, 2017, for Subgroup Generation 2.1 SUV; and December 20, 2017, for 

Subgroup 2 PC, except that a Repair Approval Date may be extended in accordance with Section 

VIII(B) or (C). 

GGG. “Repair Restitution” means the monetary compensation that Volkswagen will 

pay to Generation 2 Eligible Owners who receive a Certified Emissions Repair, as specified in 

column A of Attachment 3.

HHH. “Subgroup” means the following subdivisions of Eligible Vehicle within

Generation 2: 

Subgroup Make and Model Model Year

2.1 SUV VW Touareg, Porsche Cayenne 2013-2014 

Audi Q7 2013-2015 

2.2 SUV VW Touareg, Porsche Cayenne 2015-2016 

2 PC Audi Q5; Audi A6 quattro; Audi A7 quattro; 

Audi A8; Audi A8L 2014-2016 

III. “Totaled” means damaged after January 31, 2017, in a manner that renders it a 

total loss.

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JJJ. “Volkswagen” means Volkswagen Group of America, Inc. d/b/a Volkswagen of 

America and Audi of America, as well as each of their successors and assigns. 

KKK. “VIN” means Vehicle Identification Number. 

ORDER

I. MONETARY JUDGMENT

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

billion, thirty-nine million, two hundred forty-six thousand, seven hundred seventy-three dollars 

($4,039,246,773.00) against Volkswagen and in favor of the FTC. The Judgment amount is the 

maximum amount Volkswagen would pay based on the following assumptions: (1) a 100% 

participation rate by Eligible Consumers; (2) a 100% Buyback of all purchased Generation 1 

Eligible Vehicles; (3) a 100% Buyback of all purchased Generation 2 Eligible Vehicles; and 

(4) a 100% Lease Termination of all leased Eligible Vehicles. The Judgment amount represents 

Volkswagen’s maximum potential exposure based on the assumptions stated above. If the 

Certified Emissions Repair is timely available for the Generation 2 vehicles and 100% of 

Eligible Consumers with Generation 1 and Generation 2 vehicles participate in the Settlement, 

the maximum amount Volkswagen would pay to satisfy its obligations under this Order is 

approximately $1.2 billion in combined compensation. Additionally, the total payments 

Volkswagen must make to satisfy its obligations under this Order will vary depending on the 

level of Eligible Consumer participation in the 3.0L Settlement Program, remedies available to 

Eligible Consumers, and remedy elections Eligible Consumers make. Volkswagen shall satisfy 

its obligations under the Judgment by making the payments to consumers required by Section II 

and Sections IV through XIV of this Order. Volkswagen may use satisfaction of this Order to 

meet its obligations under the 3.0L Class Action Settlement Agreement to the extent provided for 

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in that settlement. Volkswagen also may credit against its obligations under this Order any 

payment by any third party made directly to an Eligible Consumer as compensation for an 

Eligible Vehicle as required by this Order. 

II. ADDITIONAL MONETARY PROVISIONS

IT IS FURTHER ORDERED that: 

A. Volkswagen 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. 

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

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

Volkswagen, the amount of $4,039,246,773.00 shall become immediately due and payable, less: 

(i) $6,000,000 earmarked for payments to Generation 1 Eligible Owners who cancel extended 

warranties and service plans (but only to the extent of payments actually made); (ii) $10,000 

earmarked for payment (on behalf of Generation 1 Eligible Owners) of loan balances with excess 

negative equity as of the Effective Date (but only to the extent of payments actually made); 

(iii) $30,000,000 earmarked for payments to Generation 2 Eligible Owners who cancel extended 

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warranties and service plans during a Generation 2 Buyback (but only to the extent of payments 

actually made); (iv) $50,000 earmarked for payment (on behalf of Generation 2 Eligible Owners) 

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); (v) the amount Volkswagen is 

obligated to pay for any Extension Payments pursuant to Section VIII(D) (but only to the extent 

of payments actually made); (vi) the difference between Generation 2 Buyback Restitution and 

the Generation 2 Repair Restitution for each Eligible Vehicle for which the Generation 2 

Buyback has not been triggered pursuant to Section VIII(E); and (vii) the sum of the total 

amount of all Consumer Payments Volkswagen or any third party has made to benefit Eligible 

Consumers pursuant to the 3.0L Settlement Program. 

E. Volkswagen must make all payments in accordance with this Order, and all 

payments required by the 3.0L Class Action Settlement Agreement, provided that Volkswagen 

need not make these payments to those consumers who elect not to participate in the 3.0L 

Settlement Program and are therefore eligible for the remedies set forth in Subsections 5.1, 6.1, 

or 8.1 of Appendix A to the DOJ 3.0L Consent Decree. 

F. If, for any reason, Bosch fails to pay the required amounts into escrow in 

accordance with the terms of the Bosch Consumer Class Action Agreement prior to the Effective 

Date, the monetary compensation amounts in Attachments 1-4 will be reduced for each Eligible 

Vehicle by the following amounts: Attachment 1, $1,500 (Buyback and AEM), $750 (Eligible 

Former Owner); Attachment 2, $1,200 (all amounts); Attachment 3, $1,500 (Buyback and 

AEM), $750 (Eligible Former Owner); and Attachment 4, $1,200 (all amounts). 

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III. NOTICE

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

of their rights under this Order as follows: 

A. Defendants 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 five business days of the Effective Date, Defendants shall send Eligible 

Consumers a notice as agreed to in writing by the FTC informing them of their rights under this 

Order. Defendants shall send such notice to each Eligible Consumer for whom Defendants have 

a mailing address by First-Class postage pre-paid mail. 

C. Within five business days of the Effective Date, Defendants shall send by email 

an html version of the notice in Subsection B in the body of an email (not as an attachment) to 

each Eligible Consumer for whom Defendants have an email address. The email notice shall be 

substantially the same in text, format, and font as the notice in Subsection B, and shall not 

contain any other information. 

D. Within five business days of the Effective Date, Defendants shall distribute to all 

Dealers a notice regarding the 3.0L Settlement Program.

E. Immediately upon the Effective Date, Defendants shall post links to the websites 

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

www.porsche.com/usa. 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 (or 

AudiCourtSettlement.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, www.audiusa.com, and www.porsche.com/usa and the websites 

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

duration of the 3.0L Settlement Program. 

F. Defendants shall place advertisements in major national media outlets reasonably 

calculated to notify Eligible Consumers of their eligibility for compensation.

G. At least 180 days prior to the Program End Date, Defendants shall send every 

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

Section XVI a notice by at least 2 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 XVI. At least 150 days prior to the Program End Date, 

Defendants 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 XVI following 

the first Reminder Notice.

H. Within ten business days of Defendants receiving EPA and CARB approval of 

any Approved Emissions Modification or Certified Emissions Repair in accordance with 

Appendix B of the DOJ 3.0L Consent Decree, Defendants shall send, by First-Class postage prepaid mail, notice to those Eligible Owners and Eligible Lessees whose Eligible Vehicles have an 

Approved Emissions Modification or Certified Emissions Repair informing them that there is an 

Approved Emissions Modification or Certified Emissions Repair available for their Eligible 

Vehicle. Such notice shall be in a form approved by EPA and CARB pursuant to Section 3 of 

Appendix A to the DOJ 3.0L Consent Decree. Such notice shall disclose the impacts of the 

Approved Emissions Modification or Certified Emissions Repair on an Eligible Vehicle. For 

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Generation 1 Eligible Owners and Generation 1 Eligible Lessees, the notice shall inform them 

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

and VI. 

I. Within ten business days of Defendants (a) receiving a final notice of disapproval 

of a proposed Approved Emissions Modification or proposed Certified Emissions Repair from 

EPA or CARB, (b) withdrawing any application for an Approved Emissions Modification or 

Certified Emissions Repair, or (c) declining to submit any such application in accordance with 

Appendix B of the DOJ 3.0L Consent Decree, Defendants shall send by First-Class postage prepaid mail notice to those Eligible Owners and Eligible Lessees whose Eligible Vehicles were 

affected by the disapproval, withdrawal, or declination described above that the proposed 

Approved Emissions Modification or proposed Certified Emissions Repair for the affected 

Eligible Vehicles is not available. Such notice shall be in a form approved by EPA and CARB 

pursuant to Section 3 of Appendix A to the DOJ 3.0L 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. 

J. 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, Defendants must 

ensure that the communications: (a) are accurate, complete, and non-misleading, 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 

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that the consumer must meet; (d) use plain language; and (e) include a web location and 

telephone number where consumers can have questions answered. 

IV. COMPENSATION FOR BUYBACK OF GENERATION 1 ELIGIBLE VEHICLES

IT IS FURTHER ORDERED that for each Generation 1 Eligible Owner who elects a 

Buyback, Volkswagen shall provide compensation as follows: 

A. Upon submission of a Generation 1 Eligible Owner’s complete and valid claim 

application pursuant to Section XVI and surrender of the right, title, and interest in, and 

possession of, an Eligible Vehicle to Volkswagen at a Dealer (or other entity authorized by 

Volkswagen), Volkswagen shall pay to the Generation 1 Eligible Owner all amounts required by 

Subsections D, E, and F. If a Generation 1 Eligible Owner elects a Buyback but does not possess 

title to the Eligible Vehicle, for title to the Eligible Vehicle to be transferred to Volkswagen, the 

Eligible Owner and Volkswagen must complete the steps required by Subsection G.1 and the 

claim application pursuant to Section XVI. 

B. Except as provided in Section XV, Volkswagen will complete a Buyback of an 

Eligible Vehicle within 60 days of a Generation 1 Eligible Owner’s scheduling of an 

appointment for an approved Buyback. 

C. Each Generation 1 Eligible Owner may, in the alternative, elect to receive an 

Approved Emissions Modification and obtain Generation 1 Approved Emissions Modification 

Restitution or Post-September 2015 Purchaser Restitution, as appropriate, pursuant to Section 

VII at any time before Volkswagen takes possession, title, and ownership of the Eligible Vehicle. 

D. Except as provided in Subsections F and G, and except for Post-September 2015 

Purchasers, Volkswagen shall pay each Generation 1 Eligible Owner who elects to participate in 

the Buyback the sum of: 

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1. The Generation 1 Buyback Restitution; 

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 Generation 1 Post-September 2015 Purchasers, Volkswagen shall pay each 

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

1. The Post-September 2015 Purchaser Restitution; 

2. 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 Generation 1 Eligible Owner with an Eligible Vehicle that is (i) damaged 

after January 31, 2017, and (ii) transferred to an insurance company or otherwise permanently 

removed from commerce, upon submission of an Eligible Owner’s complete and valid claim 

application pursuant to Section XVI, Volkswagen shall pay Generation 1 Totaled Vehicle 

Restitution or Post-September 2015 Purchaser Restitution, as appropriate, to the Eligible Owner. 

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 XVI and surrender of all right, title, and 

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

by Volkswagen, Volkswagen 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 

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

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

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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 

Volkswagen 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 Volkswagen 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 XVI and surrender of all right, title, and interest in, 

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

Audi Dealer (or other entity authorized by Volkswagen), Volkswagen 

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.

3. Volkswagen 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 

Volkswagen, including VW Credit, Inc. and Audi Financial Services, Inc., 

are not part of the Loan Obligation for purposes of Subsections G.1 and 

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G.2 above, and Volkswagen may not use them as a basis to reduce the 

payments due to an Eligible Owner under this Section. 

H. Nothing herein precludes any Generation 1 Eligible Owner from entering into a 

private transaction outside the claims process, including a trade-in to a branded or non-branded 

dealer for an amount less than, equal to, or more than the amount to which they are entitled under 

the 3.0L Settlement Program; provided, however, that nothing in this Order or the 3.0L 

Settlement Program authorizes any branded or non-branded dealer to engage in any deceptive 

practice, unfair trade practice, or other practice prohibited by law, and nothing in this Order or 

the 3.0L Settlement Program limits the FTC’s authority or the authority of any other law 

enforcement agency. If a Generation 1 Eligible Owner sells, transfers, or trades in an Eligible 

Vehicle after January 31, 2017, to any person or entity other than through the Order, that Eligible 

Owner forfeits his, her, or its benefits under this Order. This includes all private sales and 

transfers, all trade-ins to Volkswagen, Audi, or Porsche Dealers that are transacted outside the 

official 3.0L Settlement Program, and all trade-ins to unaffiliated dealers.

V. COMPENSATION FOR GENERATION 1 ELIGIBLE LESSEES WHOSE 

LEASES TERMINATED AFTER SEPTEMBER 18, 2015

IT IS FURTHER ORDERED that for any Generation 1 Eligible Lessee who had an 

active lease at any time between September 18, 2015, and November 2, 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 Generation 1 Eligible Lessee’s complete and valid claim 

application pursuant to Section XVI, Volkswagen shall pay Generation 1 Lessee Restitution to 

such a Generation 1 Eligible Lessee.

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VI. COMPENSATION AND LEASE TERMINATION FOR GENERATION 1 

ELIGIBLE LESSEES WITH ACTIVE LEASES

IT IS FURTHER ORDERED that for each Generation 1 Eligible Lessee who has an 

active lease and who elects a Lease Termination, Volkswagen shall provide compensation as 

follows: 

A. Upon submission of a Generation 1 Eligible Lessee’s complete and valid claim 

application pursuant to Section XVI and surrender of an Eligible Vehicle to Volkswagen at a 

Volkswagen or Audi Dealer (or other entity authorized by Volkswagen), Volkswagen shall pay 

Generation 1 Lessee Restitution to the Generation 1 Eligible Lessee. Volkswagen shall pay all 

amounts necessary to achieve a Lease Termination without penalty to the Generation 1 Eligible 

Lessee, including, without limitation, early termination fees owed to third parties. Provided, 

however, that Volkswagen shall not be obligated to pay any Generation 1 Lessee Restitution 

Adjustments and may deduct any such amounts from the Generation 1 Lessee Restitution. When 

calculating excess mileage fees, Volkswagen cannot prorate 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. 

B. Except as provided in Section XV, Volkswagen shall complete a Lease 

Termination of an Eligible Vehicle within 45 days of a Generation 1 Eligible Lessee’s election to 

schedule an appointment for an approved Lease Termination. 

C. Volkswagen 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. 

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VII. COMPENSATION FOR APPROVED EMISSIONS MODIFICATIONS OF 

GENERATION 1 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, Volkswagen shall provide free 

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

DOJ 3.0L 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 XVI and completion of an Approved Emissions 

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

Volkswagen shall pay the amounts required by Subsections B through E. 

B. Except for Post-September 2015 Purchasers of Generation 1 Eligible Vehicles, 

Volkswagen shall pay Generation 1 Approved Emissions Modification Restitution to each 

Eligible Owner who elects to receive an Approved Emissions Modification. 

C. For Post-September 2015 Purchasers of Generation 1 Eligible Vehicles, 

Volkswagen shall pay Generation 1 Post-September 2015 Purchaser Restitution to each PostSeptember 2015 Purchaser who elects to receive an Approved Emissions Modification. 

D. Volkswagen shall pay Generation 1 Lessee Restitution to each Generation 1 

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) 

formerly leased and now owns the Eligible Vehicle but did not acquire ownership of the Eligible 

Vehicle until after January 31, 2017. 

E. Except as provided in Section XV, Volkswagen shall complete an Approved 

Emissions Modification within 60 days of an Eligible Owner’s or Eligible Lessee’s scheduling of 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

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

CARB of an Approved Emissions Modification. 

F. Volkswagen 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. Volkswagen shall provide 

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

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

This provision is in addition to the alternative availability of a concierge service (picking up and 

dropping off of a consumer’s vehicle). 

VIII. COMPENSATION ALTERNATIVES FOR GENERATION 2 ELIGIBLE 

OWNERS AND LESSEES

IT IS FURTHER ORDERED that Defendants must offer each Generation 2 Eligible 

Owner a Certified Emissions Repair, or if a Certified Emissions Repair is not timely available, 

the choice between a Buyback and an Approved Emissions Modification, in accordance with the 

terms set forth in this Order: 

A. If, on or before the applicable Repair Approval Date, Defendants have a Certified 

Emissions Repair for an Eligible Vehicle, then Defendants must offer each Eligible Owner of 

such Eligible Vehicle a free Certified Emissions Repair and Repair Restitution or PostSeptember 2015 Purchaser Restitution, as appropriate, and each Eligible Lessee of such Eligible 

Vehicle a free Certified Emissions Repair and Lessee Repair Restitution, in accordance with 

Section IX. 

B. Defendants represent that the Certified Emissions Repair shall not result in 

Reduced Performance. In the event that the Certified Emissions Repair causes Reduced 

Performance of the Eligible Vehicle, Volkswagen shall make an additional payment of $500 for 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

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each affected Eligible Vehicle. The performance impacts of a Certified Emissions Repair shall 

be measured by Volkswagen pursuant to industry standards in connection with its submission of 

an Emissions Modification Proposal to EPA and CARB and, upon approval of such Emissions 

Modification Proposal, Defendants shall disclose the extent of any Reduced Performance in a 

notice to each impacted Generation 2 Eligible Owner or Generation 2 Eligible Lessee, which 

may be satisfied by the mailing of a notice under the 3.0L Class Action Settlement Agreement. 

In the event that the Certified Emissions Repair causes a substantial, material adverse 

degradation above and beyond the Reduced Performance levels specified in Paragraph DDD, the 

FTC reserves the right to seek, and Defendants reserve the right to oppose, additional remedies 

through motion to the Court. 

C. If, after the Repair Approval Date for a given Subgroup, EPA and CARB have not 

rendered a final decision for a proposed Certified Emissions Repair for any Subgroup, the FTC 

may move the Court to require Defendants to offer a Buyback for the Subgroup for which EPA 

and CARB have not rendered a decision by the Repair Approval Date, on the basis that good 

cause does not exist for further delay in offering the option of a Buyback (regardless of whether 

any appeals are pending). Within 15 days of that motion, unless the parties agree to a longer 

period, the parties will fully brief and argue whether good cause exists for offering the option of 

the Buyback and whether some additional time should be permitted before the Buyback is 

ordered. The Court will determine whether to allow testimony at the hearing, and no discovery 

will be allowed unless ordered by the Court. Defendants and the FTC agree that the Court’s 

decision on whether good cause exists for further delay in offering the option of a Buyback is 

final and not appealable. 

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D. If the Court rules that good cause does not exist to delay ordering the Buyback, 

Defendants may extend the Repair Approval Date for the relevant Subgroup(s) by paying an 

Extension Payment for each thirty (30) day period from the day the Court issues its ruling on 

FTC’s motion, up to a maximum of ninety (90) days. Any Extension Payment will be in 

addition to the compensation otherwise owed to the Eligible Owner or Eligible Lessee (including 

any Generation 2 Participation Payment). Extension Payments will be paid by Volkswagen at 

the time the Eligible Owner or Eligible Lessee receives other restitution payments under this 

Order, excluding any Generation 2 Participation Payment.

E. If Defendants have not satisfied the conditions in Section VIII(A) for a given 

Generation 2 Eligible Vehicle and (a) the Court finds that good cause does not exist for 

extending a Repair Approval Date and Defendants do not extend the Repair Approval Date, or 

(b) the Repair Approval Date has been extended by the maximum ninety (90) days, then, within 

ten business days, Defendants must offer Eligible Owners of such Eligible Vehicles either (1) the 

choice of a Buyback and Generation 2 Buyback Restitution or Post-September 2015 Purchaser 

Restitution, as appropriate, in accordance with Section X or (2) an Approved Emissions 

Modification and Generation 2 Approved Emissions Modification Restitution or Post-September 

2015 Purchaser Restitution, as appropriate, in accordance with Section XI, and offer Eligible 

Lessees of such Eligible Vehicles Generation 2 Lessee Restitution and the choice of a Lease 

Termination or an Approved Emissions Modification in accordance with Sections XI and XII. 

IX. COMPENSATION FOR GENERATION 2 CERTIFIED EMISSIONS REPAIRS

IT IS FURTHER ORDERED that, if Defendants have a Certified Emissions Repair 

pursuant to Section VIII(A), Defendants shall make Certified Emissions Repairs and 

Volkswagen shall provide compensation as follows: 

Case 3:15-md-02672-CRB Document 3098-1 Filed 03/28/17 Page 29 of 63
In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

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A. Volkswagen shall make a Generation 2 Participation Payment to each Generation 

2 Eligible Owner, Generation 2 Post-September 2015 Purchaser, and Generation 2 Eligible 

Lessee who elects to participate in the 3.0L Settlement Program and receive a Certified 

Emissions Repair within 120 days of the Effective Date, provided, however, that in 

communications notifying Generation 2 Eligible Consumers about the availability of Generation 

2 Participation Payments, Defendants must clearly and conspicuously disclose: (1) that the 

Generation 2 Eligible Consumer will receive the same total amount through the 3.0L Settlement 

Program whether or not he or she accepts a Generation 2 Participation Payment; (2) a description 

of the terms, conditions, and process associated with the determination of eligibility for, and 

receipt of, a Generation 2 Participation Payment. 

B. Upon submission of a Generation 2 Eligible Owner’s complete and valid claim 

application pursuant to Section XVI and completion of a Certified Emissions Repair by a Dealer 

(or other entity authorized by Defendants) Volkswagen shall pay each such Generation 2 Eligible 

Owner Repair Restitution or Post-September 2015 Purchaser Restitution, as appropriate, minus 

any Generation 2 Participation Payment actually made, at the time the Eligible Vehicle receives 

the Certified Emissions Repair or upon proof that an Eligible Vehicle was Totaled after January 

31, 2017. Except as provided for in Section XV, Repair Restitution and a Certified Emissions 

Repair shall be in lieu of Generation 2 Buyback Restitution and a Buyback or Generation 2 

Approved Emissions Modification Restitution and an Approved Emissions Modification. 

C. Upon submission of a Generation 2 Eligible Lessee’s complete and valid claim 

application pursuant to Section XVI and completion of a Certified Emissions Repair by an 

appropriate brand authorized Dealer (or other entity authorized by Defendants), Volkswagen 

shall pay the Lessee Repair Restitution at the time the Eligible Vehicle receives the Certified 

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In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

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Emissions Repair. The Lessee Repair Restitution and Certified Emissions Repair shall be in lieu 

of the Generation 2 Lessee Restitution and Approved Emissions Modification or Lease 

Termination.

D. Defendants shall complete Certified Emissions Repairs within 60 days of an 

Eligible Owner’s or Eligible Lessee’s scheduling of an appointment for a Certified Emissions 

Repair, following approval by EPA and CARB of a Certified Emissions Repair. 

E. Volkswagen shall provide a loaner vehicle at no cost to the consumer for any 

Certified Emissions Repair that is scheduled to take longer than 3 hours or that is not complete 

within 3 hours of the scheduled start of the appointment. Volkswagen shall provide consumers 

receiving a Certified Emissions Repair such loaner vehicles at no cost for 24 hours after 

Defendants notify them that the Certified Emissions Repair is complete. This provision is in 

addition to the alternative availability of a concierge service (picking up and dropping off of a 

consumer’s vehicle).

X. COMPENSATION FOR BUYBACK OF GENERATION 2 ELIGIBLE VEHICLES

IT IS FURTHER ORDERED that, if Generation 2 Eligible Owners are eligible for a 

Buyback pursuant to Section VIII(E), Volkswagen shall provide compensation as follows: 

A. Upon submission of a Generation 2 Eligible Owner’s complete and valid claim 

application pursuant to Section XVI and surrender of the right, title, and interest in, and 

possession of, an Eligible Vehicle to Defendants at a Dealer (or other entity authorized by 

Defendants), Volkswagen shall pay to the Generation 2 Eligible Owner all amounts required by 

Subsections D, E, and F. If a Generation 2 Eligible Owner elects a Buyback but does not possess 

title to the Eligible Vehicle, for title to the Eligible Vehicle to be transferred to Defendants, the 

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Eligible Owner and Defendants must complete the steps required by Subsection G.1 and the 

claim application pursuant to Section XVI. 

B. Except as provided in Section XV, Defendants will complete a Buyback of an 

Eligible Vehicle within 60 days of a Generation 2 Eligible Owner’s scheduling of an 

appointment for an approved Buyback. 

C. Each Generation 2 Eligible Owner may, in the alternative, elect to receive an 

Approved Emissions Modification and obtain Generation 2 Approved Emissions Modification 

Restitution or Post-September 2015 Purchaser Restitution, as appropriate, pursuant to Section XI 

at any time before Defendants take possession, title, and ownership of the Eligible Vehicle. 

D. Except as provided in Subsection F and G, and with the exception of PostSeptember 2015 Purchasers, Volkswagen shall pay each Generation 2 Eligible Owner who elects 

to participate in the Buyback the sum of: 

1. The Generation 2 Buyback Restitution; 

2. Less any Generation 2 Participation Payment, if applicable; 

3. 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 Generation 2 Post-September 2015 Purchasers, Volkswagen shall pay each 

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

1. The Post-September 2015 Purchaser Restitution; 

2. Less any Generation 2 Participation Payment, if applicable; 

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

the Eligible Vehicle pursuant to Subsection G, if applicable.

Case 3:15-md-02672-CRB Document 3098-1 Filed 03/28/17 Page 32 of 63
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F. For any Generation 2 Eligible Owner with an Eligible Vehicle that is damaged 

after January 31, 2017, in a manner that renders it a total loss and transferred to an insurance 

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

pursuant to Section XVI, Volkswagen shall pay Generation 2 Totaled Vehicle Restitution or 

Post-September 2015 Purchaser Restitution, as appropriate, to the Eligible Owner. 

G. For any Generation 2 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 XVI and surrender of all right, title, and 

interest in, and possession of, an Eligible Vehicle to Defendants or an 

entity authorized by Defendants, Volkswagen 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 became 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 Volkswagen 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 Defendants to 

elect the Buyback. 

Case 3:15-md-02672-CRB Document 3098-1 Filed 03/28/17 Page 33 of 63
In re Volkswagen “Clean Diesel” Marketing, Sales Practices, and Products Liability Litigation, MDL No. 2672

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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 XVI and surrender of all right, title, and interest in, 

and possession of, an Eligible Vehicle to Defendants at a Dealer (or other 

entity authorized by Defendants), Volkswagen 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.

3. Defendants 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 any of 

the Defendants, including VW Credit, Inc., Audi Financial Services, Inc., 

and Porsche Financial Services, Inc., are not part of the Loan Obligation 

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

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

this Section.

H. Nothing herein precludes any Generation 2 Eligible Owner from entering into a 

private transaction outside the claims process, including a trade-in to a branded or non-branded 

dealer for an amount less than, equal to, or more than the amount to which they are entitled under 

the 3.0L Settlement Program; provided, however, that nothing in this Order or the 3.0L 

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Settlement Program authorizes any branded or non-branded dealer to engage in any deceptive 

practice, unfair trade practice, or other practice prohibited by law, and nothing in this Order or 

the 3.0L Settlement Program limits the FTC’s authority or the authority of any other law 

enforcement agency. If a Generation 2 Eligible Owner sells, transfers or trades in an Eligible 

Vehicle after January 31, 2017, to any person or entity other than through this Order, that 

Eligible Owner forfeits his, her, or its benefits under this Order. This includes all private sales 

and transfers, and all trade-ins to VW, Audi, or Porsche branded dealers that are transacted 

outside the official 3.0L Settlement Program, and all trade-ins to unaffiliated dealers. 

XI. COMPENSATION FOR APPROVED EMISSIONS MODIFICATIONS OF 

GENERATION 2 ELIGIBLE VEHICLES

IT IS FURTHER ORDERED that if Eligible Owners and Eligible Lessees are eligible for 

an Approved Emissions Modification pursuant to Section VIII(E) and elect to receive an 

Approved Emissions Modification, Defendants shall provide free Approved Emissions 

Modifications that fully comply with this Order and Appendix B of the DOJ 3.0L Consent 

Decree, and Volkswagen 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 XVI and completion of an Approved Emissions 

Modification by a Dealer (or other entity authorized by Defendants), Volkswagen shall pay the 

amounts required by Subsections B through E. 

B. Except for Post-September 2015 Purchasers of Generation 2 Eligible Vehicles, 

Volkswagen shall pay Generation 2 Approved Emissions Modification Restitution to each 

Eligible Owner who elects to receive an Approved Emissions Modification. 

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C. For Post-September 2015 Purchasers of Generation 2 Eligible Vehicles 

Volkswagen shall pay Generation 2 Post-September 2015 Purchaser Restitution to each PostSeptember 2015 Purchaser who elects to receive an Approved Emissions Modification. 

D. Volkswagen shall pay Generation 2 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 January 31, 2017. 

E. Except as provided in Section XV, Defendants shall complete an Approved 

Emissions Modification within 60 days of a Generation 2 Eligible Owner’s or a Generation 2 

Eligible Lessee’s scheduling of an appointment for an Approved Emissions Modification, 

following approval by EPA and CARB of an Approved Emissions Modification. 

F. Volkswagen 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. Volkswagen shall provide 

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

hours after Defendants notify them that the Approved Emissions Modification is complete. 

This provision is in addition to the alternative availability of a concierge service (picking up and 

dropping off of a consumer’s vehicle). 

XII. COMPENSATION FOR GENERATION 2 ELIGIBLE LESSEES WHOSE 

LEASES TERMINATED AT ANY POINT AFTER SEPTEMBER 18, 2015

IT IS FURTHER ORDERED that for any Generation 2 Eligible Lessee who had an 

active lease as of September 18, 2015, and/or November 2, 2015, but whose lease has since 

terminated and who returned the Eligible Vehicle at the conclusion of the lease, upon submission 

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of the Generation 2 Eligible Lessee’s complete and valid claim application pursuant to Section 

XVI, Volkswagen shall pay Generation 2 Lessee Restitution to such Generation 2 Eligible 

Lessee. 

XIII. COMPENSATION AND LEASE TERMINATION FOR GENERATION 2 

ELIGIBLE LESSEES WITH ACTIVE LEASES

IT IS FURTHER ORDERED that if Generation 2 Eligible Lessees with active leases are 

eligible for a Lease Termination pursuant to Section VIII(E) and elect a Lease Termination, 

Volkswagen shall provide compensation as follows: 

A. Upon submission of a Generation 2 Eligible Lessee’s complete and valid claim 

application pursuant to Section XVI and surrender of an Eligible Vehicle to Defendants at a 

Dealer (or other entity authorized by Defendants), Volkswagen shall pay Generation 2 Lessee 

Restitution to the Eligible Lessee. Volkswagen 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 Volkswagen shall not be 

obligated to pay any Generation 2 Lessee Restitution Adjustments and may deduct any such 

amounts from the Generation 2 Lessee Restitution. When calculating excess mileage fees, 

Defendants cannot prorate 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. 

B. Except as provided in Section XV, Defendants shall complete a Lease 

Termination of an Eligible Vehicle within 45 days of a Generation 2 Eligible Lessee’s 

scheduling of an appointment for an approved Lease Termination. 

C. Volkswagen 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. 

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XIV. COMPENSATION FOR ELIGIBLE FORMER OWNERS 

 IT IS FURTHER ORDERED that upon submission of an Eligible Former Owner’s 

complete and valid claim application pursuant to Section XVI for an Eligible Vehicle, 

Volkswagen shall pay restitution to each Eligible Former Owner who elects to participate in the 

3.0L Settlement Program as follows: 

A. If there is one Eligible Former Owner for a Generation 1 Eligible Vehicle who 

submits a complete and valid claim, then that Eligible Former Owner shall receive Generation 1 

Former Owner Restitution for the Eligible Vehicle. 

B. If there are two Eligible Former Owners for a Generation 1 Eligible Vehicle who 

submit complete and valid claims, then each Eligible Former Owner shall receive 50% of the 

Generation 1 Former Owner Restitution for the Eligible Vehicle. 

C. If there is one Eligible Former Owner for a Generation 2 Eligible Vehicle who 

submits a complete and valid claim, then that Eligible Former Owner shall receive 50% of the 

Generation 2 Repair Restitution for the Generation 2 Eligible Vehicle. Provided, however, that 

if a Buyback of Generation 2 Eligible Vehicles is triggered pursuant to Section VII(D), the 

Eligible Former Owner for a Generation 2 Eligible Vehicle shall receive a Generation 2 

Adjustment within ninety days of the date a Buyback is offered to Generation 2 Eligible Owners. 

D. If there are two Eligible Former Owners for a Generation 2 Eligible Vehicle who 

submit complete and valid claims, then the amount of Eligible Former Owner Restitution for 

each Eligible Former Owner shall be 25% of the Generation 2 Repair Restitution for the Eligible 

Vehicle. Provided, however, that if a Buyback of Generation 2 Eligible Vehicles is triggered 

pursuant to Section VIII(E), each Eligible Former Owner for a Generation 2 Eligible Vehicle 

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shall receive 50% of the Generation 2 Adjustment within ninety days of the date a Buyback is 

offered to Generation 2 Eligible Owners. 

E. Eligible Former Owners shall have until May 1, 2017, to identify themselves by 

electronic registration on the Claims Website or by submission of an identification form by mail 

or fax, provided, however, that if the Court grants preliminary approval of the 3.0L Settlement 

Agreement after February 14, 2017, Eligible Former Owners shall have 75 days from the date of 

preliminary approval to register. Eligible Former Owners that have timely identified themselves 

and Eligible Former Lessees shall have sixty (60) days from the Effective Date to submit a 

complete and valid claim.

F. Volkswagen will not pay more for a single vehicle than the amount allocated to 

that vehicle for a Buyback, if the Eligible Owner chooses a Buyback, an Approved Emissions 

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

Emissions Repair, if the Eligible Owner chooses a Certified Emissions Repair, except as 

necessary to satisfy their obligations to pay loan forgiveness pursuant to section VI(G) and X(G) 

and to pay the minimum amounts required by the DOJ 3.0L Consent Decree. No additional 

funds will be made available by Volkswagen to compensate Eligible Former Owners. 

XV. WARRANTY AND LEMON LAW PROTECTION FOR MODIFIED VEHICLES

IT IS FURTHER ORDERED that Defendants must provide an emissions control system 

warranty and an engine long block warranty (collectively, the “Extended Emissions Warranty”) 

for each Eligible Vehicle that undergoes an Approved Emissions Modification or a Certified 

Emissions Repair (“Modified or Repaired Vehicles”). 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. Defendants must not impose on consumers any fees or charges, and 

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must pay any fees or charges imposed by Dealers related to the warranty service. The Extended 

Emissions Warranty shall provide warranty coverage as follows: 

A. The emissions control system warranty must cover the entire emissions control 

system including (a) all components that are replaced, repaired, installed upgraded, or otherwise 

modified as part of the Approved Emissions Modification or Certified Emissions Repair; (b) all 

components listed in sections 3.9.1 and 3.9.2 of Appendix B of the DOJ 3.0L Consent Decree; 

and (c) an any other component that can reasonably be impacted by effects of the Approved 

Emissions Modification or Certified Emissions Repair. The emissions control system warranty 

must cover, at a minimum, the following parts:

1. The entire exhaust after treatment system including, the diesel oxidation 

catalyst, the diesel particulate filter, the SCR catalyst, the dosing injector 

and other diesel exhaust fluid system components, all sensors and 

actuators, and any exhaust flap;

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

rail, fuel injectors, and all sensors and actuators;

3. The exhaust gas recirculation system including the exhaust gas 

recirculation valve, exhaust gas recirculation bypass valve, exhaust gas 

recirculation cooler, exhaust gas recirculation filter, all related hoses and 

pipes, and all sensors and actuators;

4. The turbocharger system including all related hoses and pipes, all sensors 

and actuators;

5. The on-board diagnostics system and any malfunctions detected by the 

on-board diagnostics system; 

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6. The engine control unit and transmission control unit. 

B. The engine long block warranty must cover the engine sub-assembly that consists 

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

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

1. Measured from the Eligible Vehicle’s initial sale or lease: 10 years or 

120,000 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 C.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.

D. Defendants must extend the Extended Emissions Warranty periods in Section 

XV(C) by 6 months and 6,000 miles for each additional OBD noncompliance beyond what is 

required in Sections 3.1.6 to 3.1.8 of Appendix B of the DOJ 3.0L Consent Decree. 

E. Defendants shall make available online a searchable database in accordance with 

Section 3.9.4 of Appendix B of the DOJ 3.0L Consent Decree that includes all Eligible Vehicles, 

and that includes all 3.0-liter vehicles possessed by Defendants or Dealers, by which users, 

including Eligible Owners, Eligible Lessees, and prospective purchasers, may conduct a free-ofCase 3:15-md-02672-CRB Document 3098-1 Filed 03/28/17 Page 41 of 63
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charge search by vehicle VIN to determine whether the Extended Emissions Warranty, and any 

additional warranty extensions, apply to a specific vehicle. 

F. Defendants must also maintain a database in accordance with Section 3.9.5 of 

Appendix B of the DOJ 3.0L Consent Decree that includes all Eligible Vehicles, and that 

includes all 3.0-liter vehicles possessed by Defendants or Dealers, by which Defendants’ Dealers 

and Defendants’ 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. 

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

available to any and all subsequent owners and operators. 

H. 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. 

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

local, or federal legal rights available to the owners. 

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

null and void. 

K. For Eligible Owners and Eligible Lessees who decline to receive the Approved 

Emissions Modification or Certified Emissions Repair for an Eligible Vehicle, Defendants must 

continue to service such Eligible Vehicle in accordance with existing applicable warranty 

provisions, provided that if service of the engine control unit is needed, in no event may 

Defendants install the master series calibration. Such requirements, and the potential effect on 

Eligible Owners and Eligible Lessees must be clearly described in the Emissions Modification 

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Disclosure statement in accordance with Section 4.3.10 of Appendix B of the DOJ 3.0L Consent 

Decree. 

L. Defendants must offer (for Repaired Vehicles) or reoffer (for Modified Vehicles) 

and provide a Buyback or Lease Termination to any Eligible Owner or Eligible Lessee of a 

Modified or Repaired Vehicle, in the event that, during the 18 months or 18,000 miles 

(whichever occurs first) following the completion of the Approved Emissions Modification or 

Certified Emissions Repair (the “Reoffer Period”): 

1. Defendants fail to repair or remedy (at Volkswagen’s expense) a 

confirmed mechanical failure or malfunction covered by the Extended 

Emissions Warranty and associated with the Approved Emissions 

Modification or Certified Emissions Repair (a “Warrantable Failure”) after 

the Eligible Owner or Eligible Lessee physically presents the Modified or 

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

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

(4) separate service visits for the same Warrantable Failure during 

the Reoffer Period; or 

b. the Modified or Repaired Vehicle with the Warrantable Failure is 

out of service due to the Warrantable Failure for a cumulative total 

of 30 days during the Reoffer Period. For avoidance of doubt, a 

Modified or Repaired Vehicle shall not be deemed “out of service” 

when, after diagnosing the Warrantable Failure, the Dealer returns 

or tenders the Modified or Repaired Vehicle to the customer while 

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the Dealer awaits necessary parts for the Warrantable Failure and 

the Modified or Repaired Vehicle remains Operable. 

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

Termination pursuant to Subsection L, 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 

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

Consumer Payments already received; or in the case of a Certified Emissions Repair, the Eligible 

Owner or Eligible Lessee shall receive the Generation 2 Buyback Restitution or Generation 2 

Lessee Restitution payments, less any Consumer Payments made, with the exception of any 

Generation 2 Participation Payments. No Eligible Owner or Eligible Lessee shall receive double 

recovery of any portion of any Consumer Payment. 

N. For Eligible Owners and Eligible Lessees with Generation 2 Eligible Vehicles 

(i) whose original New Vehicle Limited Warranty and/or Powertrain Limited Warranty 

expired/expires prior to the timely availability of a Certified Emissions Repair as outlined in 

Section IX, and (ii) which are not covered by another warranty and/or service contract (provided 

through Volkswagen, Porsche, or any third-party), Volkswagen agrees to provide a Bridge 

Warranty providing coverage and terms mirroring the coverage previously provided by the 

expired New Vehicle Limited Warranty or Powertrain Limited Warranty. The Bridge Warranty 

shall exclusively apply to covered repairs performed by a Dealer based on conditions that arose 

between (a) January 31, 2017, or the expiration date of the New Vehicle Limited Warranty or 

Powertrain Limited Warranty, whichever is later, and (b) the date that a Certified Emissions 

Repair is approved. For avoidance of doubt, the benefits set forth in this provision are available 

only to consumers who participate in the 3.0L Settlement Program. 

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O. Any Eligible Consumer who receives a Buyback, and who has a warranty, 

extended warranty, or vehicle service plan purchased from a Dealer and valid at the time of 

Buyback, is entitled to a prorated refund of any unused, otherwise nonrefundable portion of the 

purchase price of the warranty, extended warranty, or vehicle service plan, including termination 

fees, provided that the contract was purchased on or prior to January 31, 2017. The prorated 

refund shall account for any unused months (if the warranty or plan is time-based) or 

service/maintenance events (if the warranty or contract is based on service events), as applicable. 

XVI. CLAIMS PROCESSING

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

by this Order: 

A. On the Effective Date, Volkswagen shall maintain claims administration websites 

with URLs: VWCourtSettlement.com and AudiCourtSettlement.com. The websites 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 publicly 

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, 

Volkswagen 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 Defendants online, such as through banner ads, search 

engine ads, or social media; 

2. Include a copy of this Order, the DOJ 3.0L Consent Decree and all 

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

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Modification Notices, which must be made available pursuant to 

Subsection 5; 

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

under this Order, including the information needed for Eligible Consumers 

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 Former Owners;

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

within ten 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 Defendants 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 3.0L 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 VIN for their vehicle; 

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

whether their vehicle is eligible for the 3.0L 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 (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, Volkswagen shall establish a toll-free telephone number 

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

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exception of Holidays, Volkswagen 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 

Volkswagen has adequately trained to accurately and clearly answer all reasonable consumer 

questions regarding the 3.0L Settlement Program.

C. Volkswagen 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 ten business days, or more 

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

application is complete and has been transferred to the Claims Supervisor 

for verification of 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 Defendants notify a 

consumer that their claim application is deficient, Defendants shall have 

ten business days from resubmission of the claims application to notify 

such consumer whether his or her application is complete; 

3. Within ten business days, or more quickly if reasonable, of receiving a 

completed application, notifying consumers whether they are eligible for 

their elected remedy, and providing consumers with offer letters as 

appropriate, provided, however, that if there is an existing lienholder other 

than VW Credit, Inc. or Audi Financial Services, Inc. then the ten-day 

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period will not begin until the lienholder has provided the required lien 

payoff information; 

4. Within five business days of receiving a signed offer letter from an 

Eligible Consumer, allowing that Eligible Consumer to schedule a 

Buyback, Lease Termination, or Approved Emissions Modification or 

Certified Emissions Repair at any Dealer (or other entity authorized by 

Defendants) of the Eligible Consumer’s choosing. Defendants shall 

provide Eligible Consumers the ability to choose from at least three 

appointment dates, at different times of the day, on different days of the 

week, each of which is within 60 days of the date the Eligible Consumer 

schedules an appointment or the Effective Date, whichever is later. 

Defendants shall provide consumers with the ability to reschedule their 

appointment within 60 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 with a choice of remedies 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 

Defendants shall provide consumers with the ability to schedule their 

appointment for the newly chosen remedy within 90 days of the consumer 

notifying Defendants of the change in elected remedy using the process in 

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Subsection C.4 and providing any additional documents necessary to 

confirm eligibility for the alternative remedy; 

7. Establishing reasonable procedures designed to assist certain Eligible 

Consumers whose public service or geographic location creates an undue 

burden to participate in the claims process including Eligible Consumers 

serving with the government or military overseas, Eligible Consumers 

whose distance from the nearest Dealer substantially impedes their 

participation, and Eligible Consumers who reside on an island in the 

United States or its territories without a Dealer; such procedures must 

include, at minimum, a means for such Eligible Consumers to obtain every 

benefit under this Order to which they would otherwise be entitled, or the 

substantial equivalent of such benefit(s), with Volkswagen responsible for 

any associated additional costs. 

8. Upon completion of any buyback, early lease termination, Certified 

Emissions Repair or Approved Emissions Modification appointment, 

providing an itemized receipt showing the amount paid or to be paid to the 

consumer and any applicable adjustments pursuant to this Order as well as 

an explanation of any such adjustments; 

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. Defendants cannot use data provided by 

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consumers for participation in the 3.0L Settlement Program for any 

purpose other than implementing the 3.0L Settlement Program. 

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

3.0L Settlement Program the option to receive payment by check or by Electronic Funds 

Transfer (“EFT”). Defendants 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 five 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 Defendants and the surrender of the Eligible Vehicle to Defendants, (i) an EFT shall 

be submitted within three 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, Volkswagen shall send 

an additional check within five banking days for the amount of the positive adjustment or (b) if 

the Eligible Vehicle is subject to a negative Mileage Adjustment, a check will not be provided 

immediately and instead Volkswagen will issue and send a new check within five banking days 

for the adjusted amount. 

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

Eligible Vehicle to Defendants, (i) an EFT shall be submitted within three 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 

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immediately and instead Volkswagen will issue and send a new check within five 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 Dealer, (i) an EFT 

shall be submitted within three banking days or (ii) a check shall be mailed within five banking 

days. 

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

Defendants 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.

J. Notwithstanding anything else in this Order, the Generation 1 Buyback and Lease 

Termination offers required under Sections IV and VI of this Order shall be available to Eligible 

Owners and Eligible Lessees beginning within fifteen business days from the Effective Date and 

shall remain open until the Program End Date. The Generation 2 Buyback and Lease 

Termination offers under Sections X and XIII of this Order, if triggered pursuant to Section 

VIII(E) shall remain open until the Program End Date. Provided however, that an Eligible 

Consumer must complete a claims application no later than 120 days before the Program End 

Date to participate in the 3.0L Settlement Program. 

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XVII. COURT-APPOINTED CLAIMS SUPERVISOR

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

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

Claims Supervisor for Defendants. 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 XVI, however, the 

Claims Supervisor may consult with Defendants on how to process claims in compliance with 

this Order. The Claims Supervisor has the following power and authority to monitor 

Defendants’ compliance with the 3.0L 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 3.0L Settlement Program; and

4. Determinations that claims are “ineligible” are proper under the 3.0L

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 Defendants, concerning 

Defendants’ performance of its obligations under this Order, including: 

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1. The progress of the 3.0L Settlement Program, including but not limited to 

the participation rate in any Buyback, Lease Termination, Approved 

Emissions Modification, and Certified Emissions Repair; 

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 3.0L Settlement Program option; and

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

C. The Claims Supervisor shall serve until two months after the Program End Date, 

unless ordered by this Court to continue. 

D. Defendants 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. Defendants 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 Defendants’ compliance with this Order. 

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

information related to compliance with Sections IV-XVI within ten business days of a request, 

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

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

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

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

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

duties and responsibilities. 

XVIII. ORDER ACKNOWLEDGMENTS

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

Order:

A. Defendants, within seven 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 five years after entry of this Order, Defendants must deliver a copy of this 

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

involved in carrying out the Settlement Program as described in Sections VI through XVI; and 

(3) any business entity resulting from any change in structure as set forth in Section XX. 

Delivery must occur within seven 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 Defendants employs and to which Defendants 

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

acknowledgment of receipt of this Order and Defendants 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 Defendants delivered a copy of this Order pursuant 

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

Order was sent in a way reasonably calculated to effect delivery. 

XIX. COMPLIANCE REPORTING

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

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

sworn under penalty of perjury: 

1. Defendants 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 Defendants; 

(b) describe in detail whether and how Defendants are in compliance with 

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

acknowledgment obtained pursuant to this Order, unless previously 

submitted to the FTC. 

B. For 10 years after entry of this Order, Defendants 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 Defendants have any ownership 

interest in or control 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. Defendants must submit to the FTC notice of the filing of any bankruptcy 

petition, insolvency proceeding, or similar proceeding by or against such Defendants 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.

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E. Any information Defendants submit 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. 

XX. COMPLIANCE MONITORING

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

with this Order:

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

Defendants 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 Defendants, 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). Defendants 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 Defendants. Defendants must permit representatives of the FTC to interview any employee 

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or other person affiliated with any Defendants who have 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 Defendants or any 

individual or entity affiliated with Defendants, 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. Defendants may assert any and all 

available defenses, rights, or privileges. 

XXI. 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: 

 

CHARLES R. BREYER

United States District Judge

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