Volkswagen Scandal

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The Fair Trade Commission has issued a report calling for charges against former and incumbent senior employees of Volkswagen for running exaggerated or false advertisements. The carmaker is also expected receive fines of tens of millions of dollars.

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The Fair Trade Commission is reported to have delivered a letter of opinion to Volkswagen, calling for charges to be pressed against ten former and current senior executives of the German carmaker for running exaggerated or false advertisements. The Commission is holding the carmaker responsible for using an eco-friendly image in marketing despite falsified emissions tests. Volkswagen had advertised that diesel cars sold in Korea for six years since 2009 satisfied European environmental standards.

[Soundbite] Owner of vehicle subject to recall : "It's true Volkswagen's eco-friendly image affected my car purchase to a certain degree. I never thought the world's number one car brand would lie."

In a deliberation report sent to Volkswagen early this month, the Fair Trade Commission said the carmaker clearly engaged in false or exaggerated advertising. The report is also said to contain information on documents forged by the carmaker. The commission will hear Volkswagen's opposing argument before holding a plenary session to reach a final conclusion. If the current report is finalized without modification during the session, Volkswagen is also expected to be slapped with fines amounting to tens of millions of dollars. Consumers will also be able to hold the carmaker accountable through lawsuits under a compensation system for damages regulated by the fair labeling and advertising act.