Article Title:
Judge Rules Tesla’s Autopilot and Full Self-Driving Marketing Misleading
In a significant legal development, an administrative law judge has determined that Tesla’s marketing of its Autopilot and Full Self-Driving (FSD) features was deceptive, leading customers to overestimate the capabilities of these driver assistance systems. This ruling is the culmination of a prolonged investigation by California’s Department of Motor Vehicles (DMV) into Tesla’s promotional practices.
The judge concurred with the DMV’s recommendation to suspend Tesla’s sales in California for 30 days as a penalty for the misleading marketing. However, the DMV has provisionally stayed this suspension, granting Tesla a 60-day period to amend or eliminate any deceptive language from its marketing materials. Should Tesla fail to comply within this timeframe, the suspension will be enforced. Additionally, the judge suggested a 30-day suspension of Tesla’s manufacturing license, which the DMV has also temporarily stayed.
Steve Gordon, the DMV director, emphasized the department’s commitment to upholding stringent safety standards, stating, The DMV’s decision today confirms that the department will hold every vehicle manufacturer to the highest safety standards to keep California’s drivers, passengers, and pedestrians protected. He further noted that Tesla could easily address the issue by adjusting its use of the term ‘Autopilot,’ a step that other automakers have successfully undertaken in California’s innovation-driven market.
In response, Tesla asserted on social media platform X that its sales in California would continue without interruption. The company characterized the ruling as a consumer protection order concerning the term ‘Autopilot,’ highlighting that no customers had reported issues related to this terminology.
Tesla has the option to appeal the decision after the 60-day period. Compliance with the DMV’s directives would result in the suspension being lifted. However, the specific actions required by the DMV remain unclear beyond the instruction to revise the use of ‘Autopilot’ in marketing materials. The DMV has yet to provide further clarification on this matter.
This ruling adds to the growing scrutiny Tesla faces regarding its Autopilot and FSD systems. The company is currently under investigation by the California Attorney General, the Department of Justice, and the Securities and Exchange Commission for similar allegations of misleading marketing practices. Additionally, Tesla has settled multiple civil lawsuits related to accidents involving its Autopilot technology.
