VW to give up to $1,000 payments to polluting diesel owners in Vermont, Arizona

WASHINGTON — Volkswagen AG is paying owners of polluting diesel-powered vehicles up to $1,000 in additional payments to settle state lawsuits in Vermont, the state’s attorney general said on Wednesday.

VW agreed to a $6.5 million settlement with Vermont to resolve allegations of false advertising claims. Under the settlement, VW agreed to pay owners in the state up to $1,000 each for vehicles covered under the settlement.

Vermont and Arizona, which settled similar claims last month, are the only two states in which consumers will receive restitution payments as a result of a state enforcement action. Under court settlements, VW owners previously received between $5,100 and $17,000 in compensation for having polluting vehicles fixed or selling them back to the automaker.

In 2016, VW reached a $603 million consumer fraud settlement with 44 U.S. states. Since then it has struck settlements with five other states — including Vermont — worth more than $120 million. The only state with a pending consumer fraud action is New Mexico.

“Vermonters expect and deserve truth in advertising — especially when it comes to making decisions involving environmental impacts,” said Attorney General Thomas Donovan.

Vermont owners will receive a total of $2.9 million in direct consumer restitution and VW will also pay $3.6 million into the state’s general fund.

In the Arizona settlement announced in May, VW agreed to pay $10.5 million for direct consumer payments and $20 million into the state’s general fund, to be used toward its education funding shortage.

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