A court agreement between Volkswagen and the FTC would cost billions if approved.
The EPA recently notified Fiat Chrysler Automobiles about the 104,000 car models affected by this violation.
The FBI arrested Oliver Schmidt on Jan. 7 for lying to regulators about diesel emissions.
Three more states sue Volkswagen, claiming that emissions cheating with its diesel cars goes back further than was previously disclosed.
Volkswagen owners seem uncertain about keeping their cars, though they may feel they have no choice if they don’t want to lose money.
The Environmental Protection Agency said its widening its probe into the emissions levels of diesel cars produced by automakers.
Volkswagen is being forced to recall about 482,000 diesel cars because of violation of Clean Air Act standards.
Diesel cars, SUVs and pickup trucks have seen a 24 percent increase in registrations over the last two years.