Reports : EU Could Fine Volkswagen On Consumer Protection

(RTTNews) - European commission is working to coordinate collective-action lawsuits against Volkswagen AG (VKW.L, VLKAF.PK, VOW.BE) in up to 20 EU states in an effort to get compensation for owners of cars whose emissions the company understated, according to reports.

Volkswagen admitted a year ago that it had installed software in some 11 million diesel cars that allowed it to cheat on tests for harmful nitrogen oxide emissions.

Since then, the company reached a $14.7 billion settlement with U.S. authorities to cover fines and compensation for the owners of 475,000 diesel cars that had been equipped with these so-called defeat devices.

However,Volkswagen has rejected demands by the commission and consumer-protection organizations that it offer similar compensation to car owners in the EU's 28 member states. Volkswagen argues that it is already refitting affected European cars during a broad recall and that EU law doesn't have a legal basis for compensation claims such as the ones agreed in the U.S.