Han Media: Mercedes-Benz Fined 11.2 Billion KRW for "False Advertising"

¬ "Deceiving Consumers on Electric Vehicle Batteries"

Mercedes-Benz was sanctioned by the Korea Fair Trade Commission (KFTC) because it falsely advertised that its electric vehicles were equipped with CATL batteries, when in fact they were mostly equipped with battery cells from Farasis Energy, a Chinese battery company.

On the 10th, the KFTC stated that Mercedes had concealed and omitted battery cell information and actually deceived consumers, and decided to impose a fine of 112 billion 3,900 million Korean won (approximately 52.68 million RMB) on Mercedes' German headquarters (Daimler AG) and its exclusive importer in South Korea, Mercedes Korea. The KFTC also decided to report Mercedes Korea and its German headquarters to the prosecution.

According to the KFTC, in June 2023, Mercedes produced a "Vehicle Sales Guide" and distributed it to its dealers for use when selling vehicles, containing key information about the battery cell manufacturers of electric vehicles such as EQE and EQS. The problem was that while most EQE and EQS models actually used Farasis Energy battery cells, the sales guide made it seem like all vehicles were equipped with CATL battery cells, and the guide was distributed to dealers. CATL is the world's top battery cell manufacturer in terms of market share, while Farasis Energy lags behind in market share, reputation, and technological strength. Farasis Energy has a market share of only 1%-2%, and in 2021, it recalled a large number of batteries due to fire risks in China.

According to the KFTC's judgment, Mercedes' actions led consumers to believe that the quality of their products was far superior to the actual level, and guided customers of competing companies to purchase their products, which constitutes an unfair solicitation behavior under the Fair Trade Act. However, Mercedes Korea stated, "The company respects the content of the KFTC's decision but does not agree with the committee's judgment," and "the company provided accurate and correct information to the media and customers. It will continue to express its position through legal procedures such as administrative litigation."

Source: Chosun Ilbo

Original: toutiao.com/article/1859336669148170/

Statement: This article represents the views of the author himself.