Mercedes-Benz $2.8M Settlement Over Misclassified Emissions Parts Warranty Repairs

Mercedes vehicles sold in California—and in other states that have adopted California’s tougher emissions rules—come with more than the typical bumper-to-bumper warranty when it comes to pollution-control hardware. Under California regulations (notably CCR Title 13 §2035), certain costly, emissions-critical components must be covered for a longer period—generally 7 years or 70,000 miles—under what’s often called the High-Priced Parts (HPP) emissions warranty. This case centers on 2015+ non‑EV Mercedes-Benz vehicles in 17 “California emissions” states, where owners say they paid dealership repair bills for specific engine and emissions-related parts after the standard 4-year/50,000-mile warranty ended but before the longer emissions-warranty window should have expired. The lawsuit, Hazdovac v. Mercedes-Benz USA, LLC, was filed because plaintiffs allege Mercedes-Benz failed to properly classify 14 parts as “high-priced emissions parts,” which—if true—could have shifted repair costs that should have been warranty-covered onto consumers. Mercedes-Benz denies wrongdoing, and the court did not decide the merits; instead, the parties agreed to a settlement that both compensates some past out-of-pocket spending and changes future coverage. Eligible class members can claim 50% reimbursement for qualifying repairs (including parts and labor) and 100% reimbursement for diagnosis-only charges, provided they submit invoices and proof of payment, while Mercedes also agrees going forward to cover these parts at 100% within the 7-year/70,000-mile emissions-warranty period—an important compliance-related outcome because it affects how warranty obligations are applied in the real world at dealership service counters. More broadly, the case reflects recurring tension in the auto industry between complex emissions-warranty regulations and how manufacturers designate, disclose, and administer coverage for specific components—especially as emissions-control systems become more software- and sensor-heavy (for example, ECUs, EVAP valves, PCV components, and thermostats) and repairs grow more expensive. Similar disputes have arisen across brands when owners allege they were incorrectly charged for parts that should have been covered under state-adopted California emissions warranties, and settlements like this one can influence industry practice by pushing clearer part classification, more consistent dealer guidance, and stronger incentives to align warranty documents and service decisions with regulatory requirements in CARB-aligned states.