Remarks of FTC Chairwoman Edith Ramirez

Volkswagen Press Conference

Washington, DC

June 28, 2016

I am pleased to be here today with Deputy Attorney General Yates and EPA 

Administrator McCarthy. Through the joint efforts of our terrific staff, we have secured 

significant remedies in this matter for consumers and the environment. 

As the nation’s leading consumer protection agency, the Federal Trade Commission has 

obtained a federal court order requiring Volkswagen to create a $10 billion compensation fund 

for affected VW diesel owners. This is the largest consumer refund program in the FTC’s

history. 

Our goal in this case was to ensure that affected consumers receive full compensation. 

These consumers were harmed by Volkswagen both because it unfairly sold cars with illegal 

defeat devices and because it deceptively advertised these cars with claims that they were 

“clean.” 

For years, Volkswagen’s high-profile marketing campaign touted the company’s “Clean 

Diesel” cars with eco-friendly claims such as: “Diesel. It’s no longer a dirty word.” And, 

“[C]lean-diesel technology such as ours can achieve 40-percent better fuel economy and reduce 

nitrogen-oxide emissions by 90%.” Volkswagen also claimed the cars would maintain a high 

resale value. 

In reality, consumers who bought or leased a “clean diesel” car now own a car that emits

up to 40 times more than the legal limit of a dangerous pollutant, and the car’s resale value has

plummeted.
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Under today’s orders, consumers will have the option of selling their cars back to the 

company at favorable prices. Everyone who elects a buyback will receive what his or her car 

was worth before VW’s deception became public, as well as compensation for other losses, such 

as the time and taxes needed to buy a new car. Payments under the buyback option will range 

from $12,500 to $44,000, depending on the model and certain adjustments for mileage, trim 

packages, and geographic region. If there is an approved retrofit for the emission system, 

consumers can choose instead to have their vehicles modified by Volkswagen for free and 

receive an additional payment ranging from $5,100 to $10,000 to ensure they are compensated 

fully for their cars’ diminished value. 

In addition, those leasing an affected vehicle will have the choice of either cancelling 

their leases without early termination fees or having their cars retrofitted. These consumers will 

also receive monetary compensation. 

I would also like to note that a court-appointed monitor will oversee Volkswagen to make 

sure the company complies with today’s orders and treats every affected consumer fairly. The 

FTC’s order also imposes conduct restrictions on Volkswagen, so if the company misrepresents 

the environmental benefits of its vehicles again, it can be held in contempt of court and may face 

steep penalties and possible criminal prosecution. 

Today’s announcement represents the culmination of months of close collaboration 

between the FTC, the EPA, the Department of Justice, and the State of California. Our attorneys 

have been working nearly around the clock to obtain orders in this case that address the 

significant environmental harm Volkswagen caused, and to ensure that consumers are fully 

compensated for their losses. I would like to thank all of the staff involved for their hard work. 
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Finally, let me say that I think today’s announcements should send a strong message that 

the cost of breaking our consumer and environmental laws is high. Many Americans care deeply 

about the environment, and companies should not be permitted to take advantage of that priority 

and profit from false claims. Those of us charged with protecting the environment and American 

consumers are watching, and we will not hesitate to take action when that happens.

Thank you.