The undoing of the Dieselgate scandal in Poland

Under a court-approved settlement with UOKiK, Volkswagen Group Polska sp. z o.o. will pay a fine of almost PLN 74 million over the Dieselgate scandal, confirming that Volkswagen Group Polska sp. z o.o. misled consumers about the environmental performance of EA 189 diesel vehicles. This was one of Poland's most prominent consumer protection cases, and shows that UOKiK can achieve its enforcement objectives through court-supervised settlements.

The Dieselgate scandal reaches the Polish market

In 2020, UOKiK found that Volkswagen, Audi, Seat and Skoda vehicles manufactured from 2008 to 2015 had been equipped with software that manipulated nitrogen oxide (NOx) emission levels in test environments. The software activated emission controls specifically during the testing cycle used in the EU approval process.

Volkswagen Group Polska sp. z o.o. appealed against UOKiK’s decision to the Warsaw District Court - Court of Competition and Consumer Protection. During the proceedings, the court found that the EU laws establishing exhaust emission standards (Euro 5) did not set limits for vehicle NOx emissions under "traffic conditions", and that this aspect should be removed from UOKiK’s description of what Volkswagen Group Polska sp. z o.o. had done.

The court obligated the two parties to enter settlement negotiations under Art. 479³⁰ᵃ § 1 of the Code of Civil Procedure, and they reached an agreement under which certain points of the original decision would remain unchanged, others that would be revoked, and key provisions that would be modified.

First, UOKiK’s references to NOx emissions under real driving conditions were removed to reflect the court's finding that Euro 5 does not establish such limits.

Second, certain financial penalties were revoked. The EA 189 vehicles had received official approval certificates from the competent authorities, but Volkswagen Group Polska sp. z o.o. had distributed misleading information about Euro 5 compliance and environmental performance. The settlement suggests that companies may face reduced liability when relying on official approvals, provided they are unaware of the underlying technical manipulations.

Third, the finding on the practice described in point II of the Decision was maintained, upholding the penalty of PLN 73,752,658 and the obligation to reimburse administrative costs of PLN 29,641.47.

The settlement also kept the original obligation that Volkswagen Group Polska sp. z o.o. must publish the complete decision on its website for two months.

Balanced enforcement through a court-approved settlement

This outcome highlights the effectiveness of court-supervised settlements, which offer a valuable framework for addressing technically complex disputes.

By opting for this mechanism, the parties avoided a lengthy judicial process, brought practices harmful to collective consumer interests to a halt, and ensured that the financial sanction imposed was proportionate.

If you need more information or further guidance in this area, please contact Marcin Alberski and Stanislaw Szymanek.

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