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The woes continue for Volkswagen in the United States, with the US Federal Trade Commission (FTC) joining the bandwagon of parties taking legal action against the automaker – the FTC is suing VW’s American arm, alleging that the company falsely advertised in commercials that it was selling clean, environmentally-friendly diesels to US consumers when it was not.

The agency is accusing VW of deceiving customers – through its ‘Clean Diesel’ ad campaign, which has since been pulled – into buying more than 550,000 diesel vehicles based on fraudulent claims made via the campaign.

The FTC is seeking a court order requiring Volkswagen to compensate American consumers who bought or leased an affected vehicle between late 2008 and late 2015, as well as an injunction to prevent Volkswagen from engaging in this type of conduct again.

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“For years Volkswagen’s ads touted the company’s ‘Clean Diesel’ cars even though it now appears Volkswagen rigged the cars with devices designed to defeat emissions tests. Our lawsuit seeks compensation for the consumers who bought affected cars based on Volkswagen’s deceptive and unfair practices,” FTC chairwoman Edith Ramirez said.

Last week, it was reported that an April 21 deadline has been given to VW and US regulators to agree on a fix for nearly 600,000 diesel vehicles affected by the automaker’s emissions cheating scandal. If a deal isn’t reached on the issue by then, it might go to trial.

Earlier this year, the US Justice Department sued VW for up to US$46 billion for violating the country’s environmental laws, and VW, as well as its Audi and Porsche brands, remain barred from selling any new 2016 diesel models in the United States.