California judge says Tesla engaged in deceptive Autopilot marketing

A California administrative law judge has ruled that Tesla’s marketing around its “Autopilot” and “Full Self-Driving” systems was deceptive, and that the company should face a 30-day suspension of each of its licenses to sell and manufacture cars in the state, according the California Department of Motor Vehicles.

The California DMV made formal accusations of false advertising against Tesla in 2022. Steve Gordon, the agency’s director, said in a press conference on Tuesday that his agency has adopted the judge’s order with a modified penalty, and will now give Elon Musk’s automaker a chance to fix any deceptive or confusing claims about its Autopilot and FSD systems.

If the marketing issues aren’t resolved within a 60-day window, the DMV will move ahead with a 30-day suspension of Tesla’s license to sell cars in the state, the agency said in a statement. However, Gordon said, the DMV will stay the judge’s order for a suspension of Tesla’s manufacturing license, so there will be no interruption to the company’s factory operations in the state.

In 2022, the DMV said that Tesla’s marketing of its Autopilot and Full Self-Driving systems had suggested its cars could be operated autonomously, though they actually required an attentive driver at the wheel, ready to steer or brake at any time.

Since that time, Tesla has changed the name of its premium, driver assistance option to Full Self-Driving (Supervised).

“A reasonable consumer likely would believe that a vehicle with Full Self-Driving Capability can travel safely without a human driver’s constant, undivided attention,” the judge wrote in the proposed order. “This belief is wrong — both as a technological matter and as a legal matter — which makes the name Full Self-Driving Capability misleading,” a violation of both civil and vehicle codes in California.

Public relations firm FGS Global said in an emailed statement from Tesla that, “This was a ‘consumer protection’ order about the use of the term ‘Autopilot’ in a case where not one single customer came forward to say there’s a problem. Sales in California will continue uninterrupted.”

The California DMV did not cite consumer complaints in its accusations. However, Tesla is facing a class action lawsuit in California’s Northern District from drivers who say that the company misled them for years regarding the self-driving capabilities of their Tesla electric vehicles.

Tesla’s stock price closed at a record on Tuesday, largely due to increased enthusiasm on Wall Street surrounding the company’s plans for its Robotaxis and driverless technology.

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