TLDR
- Tesla has been found guilty of deceptive marketing regarding its Autopilot and Full Self-Driving features.
- The California DMV has recommended suspending Tesla’s sales for 30 days as a penalty for misleading claims.
- Tesla has 60 days to modify or remove misleading language before any suspension is enforced.
- Tesla faces multiple investigations and lawsuits related to its Autopilot system and marketing practices.
- Tesla contested the ruling, framing it as a consumer protection issue and stating that no complaints have been filed.
Tesla has been found guilty of deceptive marketing related to its Autopilot and Full Self-Driving software by an administrative law judge. The ruling comes after years of investigation by California’s Department of Motor Vehicles (DMV).
DMV Orders Tesla to Address Deceptive Marketing
The California DMV sought a 30-day sales suspension as a penalty for Tesla’s deceptive marketing, which led customers to believe its Autopilot system was more capable than it actually was. The DMV has given Tesla a 60-day window to remove or modify the misleading language related to its software. This suspension, however, is currently on hold, as Tesla has an opportunity to resolve the issue before facing enforcement.
DMV Director Steve Gordon emphasized the importance of holding manufacturers accountable to high safety standards, stating, “Tesla can take simple steps to pause this decision and permanently resolve this issue.” The DMV highlighted that such actions aim to protect the safety of California drivers, passengers, and pedestrians. It also called on the company to implement corrections within the allotted time frame to avoid further penalties.
Tesla responded on X, stating that sales in California would continue uninterrupted. The company contested the ruling, asserting that no customers had complained about its products. Tesla framed the DMV’s decision as a “consumer protection” measure based on the term “Autopilot” rather than any actual customer issues.
Ongoing Investigations and Legal Challenges
Tesla has faced multiple investigations into its marketing practices and Autopilot technology from California’s Attorney General, the Department of Justice, and the SEC. The company has also faced personal lawsuits related to crashes involving its Autopilot system. Tesla’s handling of these issues has raised questions about the transparency of its claims regarding the tech.
The DMV’s decision is part of an effort to ensure companies provide clear, accurate information to consumers. Tesla, despite the regulatory scrutiny, maintains that its products meet safety standards and that the marketing around Autopilot has been misunderstood.
The potential sales suspension highlights the need for clearer regulation of autonomous vehicle technologies and their advertising. However, it remains unclear whether Tesla will comply with the DMV’s orders or seek to contest the ruling further.
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