Get Breaking Alerts on Stocks Before The Mainstream Media

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address
We guarantee you to keep your privacy
Connect with us
Financial Press
:-tesla-accused-of-false-advertising-of-autopilot,-full-self-driving:-‘not-based-on-facts’
:-tesla-accused-of-false-advertising-of-autopilot,-full-self-driving:-‘not-based-on-facts’

Breaking

: Tesla accused of false advertising of Autopilot, Full Self-Driving: ‘Not based on facts’

The California Department of Motor Vehicles is accusing Tesla Inc. of falsely advertising the capabilities of its self-driving technology.

Two complaints filed July 28 show that the DMV is seeking changes in the way Tesla
TSLA,
-6.63%

promotes its Autopilot and Full Self-Driving features or risk getting its manufacturing license suspended or revoked.

“Respondent made or disseminated statements that are untrue or misleading, and not based on facts,” read the complaints, which was first reported by the Los Angeles Times and filed with the state Office of Administrative Hearings (OAH).

Tesla has 15 days to respond by filing a “notice of defense.” The company, which no longer has a press department, did not return a request for comment Friday.

After Tesla responds to the complaint, the matter could be brought to a hearing before the OAH, in which an administrative law judge would make a decision, according to the DMV. If Tesla disagrees with the decision, it could appeal to Superior Court. Or the company could reach a settlement with the DMV.

“DMV seeks to require Tesla to provide more accurate terms and descriptions, and more and better consumer education of the product capabilities and limitations,” a DMV spokeswoman told MarketWatch Friday.

Get Breaking Stock Alerts

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address
We are Spam free & Secure 🙂

In the complaints, the DMV refers to at least five dates between May and July during which Tesla on its website used sentences such as “The system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat.” That sentence and others mentioned in the complaint remain on the Autopilot page on the company’s website.

“These ‘Autopilot’ and ‘Full Self-Driving Capability’ labels and descriptions represent that vehicles equipped with the ADAS features will operate as an autonomous vehicle, but vehicles equipped with those ADAS features could not at the time of those advertisements, and cannot now, operate as autonomous vehicles,” the DMV further states. ADAS stands for advanced driver assistance system.

The complaints note that Tesla has also included a disclaimer that its vehicles require active driver supervision and are not autonomous, but that it “does not cure the violation.”

Tesla’s marketing of its driver-assist systems have long been controversial. Several years ago, Consumer Reports called on Tesla to change the Autopilot name, saying it gave drivers a false sense of security. Three years ago, the Insurance Institute for Highway Safety released a study showing that people overestimated what Tesla’s Autopilot could do.

In June, the National Highway Traffic Safety Administration released for the first time data showing that Tesla vehicles topped the list of crashes linked to driver-assist technology, some of which involved fatalities.

Written By

Click to comment

Leave a Reply

Your email address will not be published.

Related Articles

Breaking

Japan’s exports rose for the 17th month in a row in July, driven by strong demand for autos and mineral fuels, Ministry of Finance...

Breaking

Amazon.com Inc. has struck a deal with Nielsen Holdings PLC to have the ratings firm measure its coverage of “Thursday Night Football” games on its Prime Video...

Breaking

Investors swarmed over Ford Motor Co.’s new $1.75 billion green-bond deal on Tuesday to help boost its development of more electric vehicles. Order books...

Breaking

Fear of missing out, or FOMO, may be helping to drive stock-market gains as major indexes rebound from 2022 lows set in mid-June —...

Get Breaking Stock Alerts

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address
We are Spam free & Secure :)

Get Breaking Stock Alerts

Email address

Get Breaking Stock Alerts

Stay informed of the biggest news on stocks so you can react before 90% of retail investors.
Email address