“Mercedes-Benz deceived consumers by concealing the battery manufacturer” ... Decision to compensate each vehicle owner 4 million won

[Financial News] The Consumer Dispute Mediation Committee has ordered Mercedes-Benz Korea to pay 4 million won to each vehicle owner over its provision of sales information suggesting that only Contemporary Amperex Technology Co., Limited (CATL) battery cells were used, even though some of its electric vehicles were equipped with Farasis battery cells.
According to industry sources on the 4th, the Consumer Dispute Mediation Committee issued a mediation decision requiring Mercedes-Benz Korea to pay 4 million won in cash to each of the 142 consumers who filed for collective dispute mediation against the company.
The case began when consumers who had bought vehicles believing that CATL battery cells were installed in five EQE and EQS models officially imported and sold by Mercedes-Benz Korea sought damages, saying that Farasis battery cells had actually been used. Fifty-three consumers filed for collective dispute mediation last May, and the number of applicants ultimately rose to 142 after additional requests to join were submitted.
The committee took issue with the fact that sales guidelines for vehicles prepared by Mercedes-Benz Korea omitted that some models were equipped with Farasis battery cells and stated that only CATL cells were used. It also cited the company’s distribution of the guidelines to dealerships and its use of employee training to put them into practice in sales as grounds for finding it responsible.
The committee determined that this provision of information infringed consumers’ opportunity to make an informed purchasing choice, as they trusted dealership employees’ explanations when buying the vehicles. It said that because the sales guidelines are key materials that serve as a reference in actual sales, the company had a duty to prepare them accurately and explain them in a way that would prevent incorrect information from reaching consumers.
Compensation was set at 4 million won per person. The committee took into account that EV batteries are key components that affect not only driving performance but also safety and vehicle value, as well as differences between Farasis and CATL in market share, brand recognition and technological capabilities. It also considered that imported-car consumers have little choice but to rely on product information provided by the domestic distributor.
The possibility that the resale value of EVs equipped with Farasis battery cells could decline was also considered in calculating compensation, as negative perceptions of the cells spread after a Mercedes-Benz EV fire in the underground parking garage of an apartment complex in the Cheongna District of Incheon in August 2024.
Earlier, last March, the Fair Trade Commission found that Mercedes-Benz Korea had unfairly induced customers by creating and distributing sales guidelines that omitted and concealed the fact that five EQE and EQS models were equipped with Farasis battery cells, making it appear that only CATL cells were used.
If Mercedes-Benz Korea accepts this decision, the committee plans to proceed with related procedures, including the submission of a compensation plan, so that affected consumers who did not take part in the mediation process can receive the same compensation.
Consumer Dispute Mediation Committee Chair Han Yong-ho said, “With civil lawsuits seeking damages currently underway, I hope this mediation decision will help provide meaningful redress for the rights and interests of the affected vehicle owners.” He added, “I hope Mercedes-Benz Korea will take a more proactive approach to resolving the dispute so that Korean consumers’ trust in German imported cars can be restored.”

[email protected] Kim Hyun-ji Reporter