Japan’s Toyota fined $1.2 billion for defrauding its customers


Newscast Media WASHINGTON—The U.S. Justice Department on Wednesday
announced the agreement reached with Japanese car giant Toyota, which required
Toyota to pay 1.2 billion U.S. dollars for defrauding consumers in the fall of 2009 and
early 2010.

Under the agreement, Toyota admitted that it misled U.S. consumers by concealing
and making deceptive statements about two safety issues which caused a type of
unintended acceleration.

“Rather than promptly disclosing and correcting safety issues about which they were
aware, Toyota made misleading public statements to consumers and gave inaccurate
facts to Members of Congress,” said Attorney General Eric Holder.

“If any part of the automobile turns out to have safety issues, the car company has a
duty to be upfront about them, to fix them quickly, and to immediately tell the truth
about the problem and its scope,” Holder said.

Besides the huge penalty, an independent monitor will be imposed on Toyota to
review and assess policies, practices and procedures relating to Toyota’s
safety-related public statements and reporting obligations.

Transportation Secretary Anthony Foxx said Wednesday’s penalties send “a powerful
message” to all manufacturers to follow the U.S. recall requirements or they will suffer
“serious consequences.”

Source: Xinhua