In the course of the legal proceedings surrounding the so-called emissions scandal, the Court of Justice of the European Union (CJEU) has further strengthened the rights of affected consumers with a recent indication. In particular, it concerns the question of how to determine appropriate financial compensation for customers of vehicle manufacturers whose vehicles were affected by illegal defeat devices. The current development underscores the Europe-wide significance of consumer protection in cases of technical manipulation of vehicle emission behavior.
Decisions and Significance of the CJEU in the Emissions Scandal
Background and Procedural Status
Since the emergence of the so-called diesel scandal, numerous lawsuits have been filed by affected vehicle owners. The legal disputes mainly concern the amount and eligibility of claims for damages, after vehicles were equipped with software that influenced emissions tests. While national courts have already issued various judgments, the latest reference to the CJEU brings another key aspect to European case law: the standards for “appropriate compensation” in light of European regulations.
In the procedure now decided (CJEU, Case No. C-666/23 – as of 04.08.2025, source: urteile.news), the main question was whether the deduction for usage benefits—i.e., the deduction of a “usage compensation” for mileage driven, as is often practiced in German court instances—was compatible with Union law. The review conducted by the CJEU was based on Union law, specifically Directive 1999/44/EC on the sale of consumer goods and associated guarantees.
Key Statements of the CJEU
The CJEU emphasizes that national courts are obliged to grant effective compensation for consumer disadvantages that violate Union law. The structuring of this compensation is fundamentally a matter of national law; nevertheless, central European consumer protection standards must not be undermined. Requirements such as effectiveness and equivalence must ensure that affected customers truly receive meaningful compensation for disadvantages suffered.
Particularly relevant is the point that a “deterrent effect” should be achieved. The amount of compensation must not result in manufacturers being able to economically ‘offset’ violations of Union law. As such, the legal position of many affected consumers is strengthened, but national courts are also required to critically review their assessment practices.
Impacts on Legal Disputes in Germany
Legal Assessment of Usage Benefits
The deduction of so-called usage benefits addressed by the CJEU—a fairly common practice in German compensation proceedings—thus once again comes under legal scrutiny. Union law demands a fair and appropriate consideration within the context of consumer protection directives. Therefore, it may be necessary to reconsider previous national calculation models and adapt them to European legal requirements.
For current and future proceedings, this does not mean an immediate obligation to apply a specific calculation method. Rather, it remains up to national courts to interpret the CJEU’s guidance in light of the particularities of each case and Union law principles. The decisive factor is that actual compensation for the disadvantage suffered is granted.
Significance for Consumers and Businesses
The new guideline creates clarity for affected customers and increased legal certainty. At the same time, it also highlights the need for businesses to ensure compliance with European standards in the development and implementation of technical solutions. The CJEU expressly offers no leeway for economic considerations that would retrospectively mitigate unlawful practices under Union law.
Classification and Outlook
Open Issues and Ongoing Proceedings
It should be noted that the final structuring of compensation continues to be subject to national judicial review and that additional unresolved legal questions may exist in individual cases. Many proceedings remain in active clarification; however, the CJEU’s findings set an important framework for the interpretation of Union law principles in consumer law.
In addition, it will become increasingly relevant in the medium term how domestic case law positions itself in response to the CJEU’s requirements and what consequences will be drawn for current and future proceedings. The reference to clear legal bases and the emphasis on effective consumer protection could have a decisive impact.
Legal Support in Connection with the Emissions Scandal
Given the complexity of the Europe-wide legal situation and the ongoing developments in case law and legislation, a comprehensive legal review is always advisable when questions arise regarding damages as a result of the emissions scandal. The lawyers specializing in commercial and corporate law, banking and capital markets law, as well as consumer law at MTR Legal are available to companies, institutional investors, and private individuals to carefully examine individual cases and discuss potential courses of action within the legal framework.
Source reference: Court of Justice of the European Union, Judgment of 04.08.2025, Case C-666/23. The content of the regulation relates to the current decision and its possible implications. Express reference is made to ongoing proceedings and the presumption of innocence.
