Hyundai, following a viral TikTok car theft challenge, is concluding a class-action lawsuit rather swiftly. Agreeing to a settlement sum of up to $200 million, the car manufacturer aims to compensate around 9 million Hyundai and Kia owners in the US. With $145 million reserved for direct losses incurred by customers whose vehicles were stolen or damaged and left uncovered by insurance, the companies pledge to account for insurance deductibles, higher insurance premiums, and related expenses.
Hyundai and Kia vehicles in TikTok-related settlement range
The settlement encompasses a diverse set of Hyundai and Kia vehicles manufactured between 2011 and 2022. Models such as Elantra, Santa Fe, Tucson, and the 2011-2014 Genesis Coupe are included. Owners can receive up to $6,125 for a total car loss and up to $3,375 for vehicle and personal property damage.
Dealership-installed updates and anti-theft measures
Hyundai and Kia have released a dealership-installed update that enhances theft prevention for select models, including the 2017-2020 Elantra, 2015-2019 Sonata, and 2020-2021 Venue. This update extends the alarm period and disables push-to-start features. All vehicles eligible for updates will receive theirs by June. Additionally, as part of the settlement, up to $300 will be offered to customers for purchasing anti-theft devices. With “tens of thousands” of free steering wheel locks already distributed to impacted customers, the companies have also facilitated AAA insurance options for those struggling to maintain coverage.
Origin of the “Kia Challenge”
The infamous “Kia Challenge” first surfaced in mid-2022 when “Kia Boyz” shared TikTok videos demonstrating how they could hot-wire Hyundai and Kia cars using USB cables, bypassing anti-theft immobilizers. Subsequent to these videos, thefts of these car models rose dramatically. The situation escalated to involve the National Highway Traffic Safety Administration after the viral challenge was associated with at least 14 crashes and eight fatalities.
This settlement helps avoid a highly publicized court battle with vehicle owners, but it may not prevent lawsuits from cities like Cleveland, San Diego, and Seattle. The whole episode serves as a stark reminder of the high cost of security flaws in the age of social media, where even minor vulnerabilities can become widely known with alarming speed.
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