KFTC Moves to Sanction Mercedes-Benz Korea Over Misleading EV Battery Claims

Paul Lee Reporter

hoondork1977@alphabiz.co.kr | 2025-08-19 04:16:22

 

 

[Alpha Biz= Kim Jisun] The Korea Fair Trade Commission (KFTC) is preparing sanctions against Mercedes-Benz Korea for allegedly deceiving consumers about the batteries used in its electric vehicles.



According to industry sources on August 18, KFTC examiners issued an investigative report on August 12, concluding that Mercedes-Benz Korea violated the Fair Labeling and Advertising Act and the Fair Trade Act.



The company is accused of falsely advertising that all of its EVs were equipped with batteries from China’s top battery manufacturer CATL, while some models, including the EQE that caught fire in Incheon last year, were found to use lower-cost “Farasis” batteries instead. The KFTC also found that Mercedes-Benz Korea instructed dealers to promote the false information to consumers.



Following onsite inspections in September 2023 and January 2024, KFTC investigators determined that corrective measures were necessary. The Commission will convene to decide on the level of sanctions.



Separately, in October 2023, 24 EQE owners filed a damages lawsuit against Mercedes-Benz’s German headquarters, its Korean unit, and leasing companies with the Seoul Central District Court.

 

 

 

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