Attorney General Schwalb Announces Multistate Settlement with Hyundai and Kia for Selling Cars Lacking Anti-Theft Technology

Attorney General Brian Schwalb announced today that the District of Columbia, along with 34 states, has reached a settlement with automobile manufacturers Hyundai and Kia for their sale of millions of vehicles nationwide that lacked industry-standard anti-theft technology. This failure resulted in an epidemic of car thefts and joyriding across the country, creating serious threats to public safety. Nearly 8,200 Kia and Hyundai vehicles currently registered in DC are at elevated risk of theft. Under the settlement, Hyundai and Kia have agreed to:

• Equip all future vehicles sold in the United States with industry-standard, engine immobilizer anti-theft technology;
  
• Offer free hardware-zinc-reinforced ignition cylinder protectors-that makes cars much harder to steal to owners or lessees of eligible vehicles, including vehicles that were previously only eligible for the companies' software updates;
  
• Provide up to $4.5 million in restitution to eligible consumers whose cars were damaged by thieves; and
  
• Pay $4.5 million to the multistate coalition to defray the costs of the investigation.

"This bipartisan, multistate settlement will help prevent car thefts and block criminals from easily stealing cars to use in other criminal activity," said Attorney General Schwalb. "Even after Kia and Hyundai's vulnerabilities were publicly exposed, resulting in a public safety crisis, the companies continued to cut corners and failed to make necessary fixes. Now, nearly 8,200 Kia and Hyundai owners in DC are eligible to have free anti-theft hardware installed in their cars. I strongly encourage everyone who is eligible to schedule installation of these devices as soon as possible."

Many of Hyundai and Kia's Vehicles Lacked Industry Standard Anti-Theft Technology.

Hyundai and Kia chose not to include anti-theft "engine-immobilizer" technology in millions of their vehicles sold throughout the United States. An engine immobilizer prevents thieves from starting a vehicle's engine without the vehicle's "smart" key, which stores the vehicle's electronic security code. Hyundai and Kia dramatically lagged behind industry standards in this area. According to one report, in 2015, only 26% of the vehicles Kia and Hyundai sold in the United States were equipped with engine immobilizers, compared to 96% of the vehicles sold by other manufacturers.

Jurisdictions Across the Country, Including DC, Have Experienced a Drastic Increase in Hyundai and Kia Vehicle Thefts.

Car thieves devised a quick and simple way to access these vehicles' ignition cylinders and start these cars without a key. This method quickly went viral on social media, leading to a drastic increase in Kia and Hyundai vehicle thefts throughout the nation. Not only did the number of thefts skyrocket, but many of the stolen vehicles were used in connection with other crimes and were involved in many traffic collisions, some fatal.

Hyundai and Kia's Response to the Public Safety Crisis.

Hyundai and Kia were slow to respond to the crisis, waiting until 2023 to launch a service campaign to update the software on most of the affected vehicles. Hyundai and Kia also offered to install a zinc-reinforced ignition cylinder protector, but only for the roughly twenty percent of their vehicles that were ineligible for this software update. While the companies claimed that the software update was effective at preventing the viral theft method, the states alleged that the software update could be, and in fact was, easily bypassed by thieves.

The Settlement Secures Availability of Zinc-Reinforced Ignition Cylinder Protectors for All Affected Vehicles.

The Attorneys General pressed Hyundai and Kia to do more to protect consumers and their communities. As a result, Attorney General Schwalb has ensured that consumers with eligible vehicles registered in the District can have zinc-reinforced ignition cylinder protectors, which prevent thieves from accessing the ignition assembly, installed on their vehicles free of charge.

There are 2,560 registered Kias in DC and 5,638 registered Hyundais in DC that are eligible to have these anti-theft devices installed at no cost. The owners and lessees of these vehicles will be notified by the car companies that they have one year from the date of the notice to make an appointment to have the zinc-reinforced ignition cylinder protector installed at their local Hyundai or Kia authorized dealerships. Attorney General Schwalb urges consumers to schedule the installation of the zinc-reinforce ignition cylinder protector as soon as possible.

In addition, consumers who previously installed the software update on their vehicles (or were scheduled to do so) but experienced a theft or attempted theft of their vehicle on or after April 29, 2025, are eligible to file a claim for restitution for certain theft and attempted-theft related expenses. For more information about eligibility and how to submit a claim for compensation, please visit the following:

• For Hyundai - Visit www.HKMultistateimmobilizersettlement.com
• For Kia - Visit https://customercare.kiausa.com/SWLD or call (800) 333-4542

The attorneys general of Connecticut, Minnesota, and New Hampshire led the multistate settlement, and were joined by the District of Columbia, Arizona, California, Colorado, Delaware, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington and Wisconsin.

How to Report Unfair Business Practices

OAG protects DC residents from fraud, exploitation, and unfair business practices by investigating and mediating consumer complaints, educating residents about their rights, and taking legal action against businesses and individuals that harm residents and break the law. Since January 2023, OAG has obtained nearly $80 million through enforcement actions and settlements on behalf of DC consumers.

To report scams, fraud, or unfair business practices, contact OAG's Office of Consumer Protection:

• Submit a complaint online at: oag.dc.gov/complaint
• Call the consumer protection hotline at (202) 442-9828
• Send a complaint via email to [email protected]

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