A settlement for USD 200 million has been reached between the two automotive behemoths Hyundai Motor and Kia Corp, which was partly prompted by a TikTok “car theft” challenge. The businesses were being sued by a group of customers. The “car theft challenge” had resulted in an epidemic of auto thefts. Data from the National Highway Traffic Safety Administration shows that the so-called “Kia challenge” caused 14 reported crashes, eight fatalities, and the theft of hundreds of cars in the US.
The criminals going by the alias “the Kia Boyz” posted how-to videos on social media sites like Youtube and TikTok
The criminals going by the alias “the Kia Boyz” posted how-to videos on social media sites like Youtube and TikTok, instructing viewers on how to get around the security features of their vehicles by using anything as basic as a USB cord. According to reports, thefts are simple to carry out since many Kia and Hyundai vehicles produced between 2015 and 2019 lack electronic immobilisers, which prohibit thieves from disabling the security system.
The number of cars reported to have been directly taken as a result of the “theft challenge” is unknown. However, according to Reuters, the settlement includes up to USD 145 million for consumers who had their cars stolen and covers nearly 9 million US owners. The payment apparently included additional associated fees not covered by insurance, such as car rental, taxi, or other transportation costs. Owners may be compensated for towing fees, stolen automobiles involved in accidents or never found, as well as payments for tickets or other fines or penalties associated with a stolen vehicle.
According to Hyundai and Kia, they will pay owners “who incurred theft-related vehicle losses or damage”
According to Hyundai and Kia, they will pay owners “who incurred theft-related vehicle losses or damage in addition to reimbursement for insurance deductibles, increased insurance premiums, and other theft-related losses.” Korean manufacturers will give consumers up to $300 towards the cost of steering wheel locks and other theft deterrence or prevention tools if their vehicles cannot fit security software upgrades. According to Steve Berman, a lawyer for owners, “the settlement will provide benefits as soon as possible to those who have experienced out-of-pocket losses.” No, numerous US large cities have filed lawsuits against automakers over thefts. These cities include San Diego, California; Baltimore; Cleveland, Missouri; Columbus, Ohio; Milwaukee, Wisconsin; and St. Louis, Missouri.
