Deceptive Marketing

Tesla is suing California’s DMV to overturn a ruling on deceptive marketing of “Autopilot” and “Full Self-Driving.” The DMV found Tesla’s marketing misleading, though opted against license suspension. Tesla argues its disclaimers clarified system limitations, asserting consumers weren’t misled. This lawsuit is crucial for Tesla’s robotaxi vision and valuation, amidst ongoing regulatory scrutiny and past legal challenges concerning its autonomous driving technology.

A California administrative law judge ruled Tesla’s marketing for “Autopilot” and “Full Self-Driving” was deceptive. The DMV initially sought to suspend Tesla’s licenses, but now offers a 60-day window to correct misleading claims. Failure to do so could result in a 30-day sales license suspension, though manufacturing will continue. The judge noted a reasonable consumer would believe the systems allow autonomous driving, which is inaccurate. Tesla stated sales will continue uninterrupted, while acknowledging the ruling focuses on consumer protection and the use of the term “Autopilot.”

Mr. Feng from Guangdong mistakenly purchased a low-speed electric vehicle resembling a Maserati in an online auction for ¥19,966, believing it was a genuine new energy vehicle. He only realized his mistake after winning the auction and discovering it was a “lao tou le.” Initially facing a penalty for cancellation, he successfully contested the charges after media attention, receiving a full refund. The incident highlights deceptive marketing tactics and the need for vigilance in online auctions, urging stricter platform verification and clearer regulations for low-speed electric vehicles.