Attorney General Masto Announces $29 Million Settlement With Toyota Over Unintended Acceleration


February 14, 2013

Las Vegas, NV – Nevada Attorney General Catherine Cortez Masto today joined 29 other states in announcing a $29 million settlement with Toyota Motor Corporation and its related North America entities over allegations Toyota concealed safety issues related to unintended acceleration.

    Toyota agreed to pay $29 million to settle consumer protection claims and has agreed to provide additional restitution and incentives to vehicle owners to promote compliance with unintended acceleration safety recalls. As a result of the settlement, Nevada will receive $1,392,400, which will go to the state’s general fund for the legislature to determine how to utilize. Additionally, Toyota will be restricted from advertising the safety of vehicles without sound engineering data to back such safety claims.

      “Unintended acceleration of a vehicle puts the health and safety of Nevadans and others across this nation in jeopardy,” said Masto. “This case underscores the need for changes in corporate culture. Consumers have the right to learn about safety issues in a timely manner so that issues can be identified and immediately addressed.”

        In a complaint filed today along with the settlement agreement, the states alleged Toyota engaged in unfair and deceptive practices when it failed to timely disclose known safety defects with accelerator pedals. The investigating State Attorneys General determined poor communication between Toyota’s nerve center in Japan and Toyota’s United States holdings was partially responsible for Toyota’s failure to timely report known safety issues.

          During settlement negotiations, emphasis was placed on ensuring changes in the corporate culture and corporate chain of command to enhance Toyota’s responsiveness to regulatory agencies in the U.S. As a result, Toyota has agreed to significantly change the safety culture within the company’s U.S. operations. Toyota will ensure that officials and officers of its U.S. operations have timely access to information and the authority to fully participate in all decisions affecting the safe operation of Toyota vehicles advertised and sold in the U.S. The requested culture and chain of command changes will also improve communication regarding safety between Toyota’s holdings in the U.S. and Toyota’s other global holdings.

            The State Attorneys General believe the agreed changes in Toyota’s corporate communications and in the chain of command for making decisions regarding safety will allow the company to move forward in a positive manner with improved responsiveness to safety concerns.

              In addition, the settlement provides that Toyota is:

                • Prohibited from reselling a vehicle it reacquired with alleged safety defects without informing the purchaser about the alleged defect(s) and certifying that the reacquired vehicle has been fixed.
                • Prohibited from misrepresenting the purpose of an inspection or repair when directing consumers to bring their vehicles to a dealer for inspection or repair; and
                • Required to exclude from the “Toyota Certified Used Vehicles” or “Lexus Certified Pre-Owned Vehicles” categories any vehicle acquired through lemon law proceedings or voluntarily repurchased by Toyota to ensure customer satisfaction.

                  For more information contact:

                    • Toyota – 1-800-331-4331
                    • Lexus – 1-800-255-3987

                      The lines are staffed from 5 a.m. PT to 6 p.m. PT Monday through Friday, and are staffed on Saturdays from 7 a.m. PT to 4 p.m. PT.

                        The New Jersey Attorney General’s Office led the investigation along with the Attorneys General from Connecticut, Florida, Louisiana, Michigan, Nevada, Ohio, South Carolina and Washington. A total of 29 states and one US territory participated in today’s settlement: Alabama, American Samoa, Arizona, Arkansas, Colorado, Connecticut, Florida, Illinois, Iowa, Kansas, Louisiana, Maryland, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington and Wisconsin.

                          Chief Deputy Attorney General JoAnn Gibbs, of the Attorney General's Bureau of Consumer Protection, represented Nevada in the settlement.

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