Mercedes-Benz Korea faces collective dispute over false EV battery claims

Mercedes-Benz Korea is now subject to a collective dispute resolution procedure concerning allegations of providing inaccurate battery information for certain EQE electric vehicle models. The Consumer Dispute Settlement Commission has decided to initiate this process following multiple complaints from consumers regarding the vehicles' battery specifications.

Approximately 53 consumers have filed claims seeking compensation, asserting that Mercedes-Benz Korea misrepresented the battery cells used in EQE vehicles sold since June 2023. The company allegedly stated that the vehicles were equipped with CATL battery cells, a globally recognized leader in the field, when they were in fact fitted with batteries from Parasis, a company considered to be less prominent in terms of market share and technological advancement.

This issue gained significant attention following a fire incident involving a Mercedes-Benz EQE in an apartment underground parking lot in Incheon in 2024. Subsequent investigations revealed discrepancies in the battery manufacturer information provided by the company. The Korea Fair Trade Commission (KFTC) previously determined that Mercedes-Benz Korea and its German headquarters had misled consumers by omitting the use of Parasis battery cells in numerous electric models and implying that all electric vehicles used CATL batteries.

As a result of the KFTC's findings, Mercedes-Benz Korea was issued a corrective order and a fine of 11.239 billion won (approximately $8.2 million USD), with a decision to refer the case to prosecutors. The Consumer Dispute Settlement Commission will now publicly announce the dispute resolution process, inviting further consumer participation. Consumers who purchased EQE vehicles between June 8, 2023, and August 12, 2024, under the impression they were receiving CATL battery-equipped models, are eligible to join the proceedings by submitting relevant documentation.