Judge Rules Tesla Misled Consumers with Autopilot and Self-Driving Claims

Bassyonni

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Judge Rules Tesla Misled Consumers with Autopilot and Self-Driving Claims

An administrative law judge has determined that Tesla misled consumers about its Autopilot and Full Self-Driving capabilities. This ruling marks a significant milestone in a prolonged case initiated by the California Department of Motor Vehicles (DMV).

Judge’s Ruling and Penalties

The judge backed the DMV’s proposal to temporarily suspend Tesla’s sales for 30 days due to deceptive marketing practices. However, the DMV has postponed enforcement, granting Tesla 60 days to amend or eliminate any misleading language before the suspension takes effect.

Additionally, the judge recommended a 30-day suspension of Tesla’s manufacturing license, but the DMV has also suspended this order. The DMV aims to ensure that all vehicle manufacturers comply with the highest safety standards.

Tesla’s Response

Tesla has publicly stated that sales will remain uninterrupted in California, calling the directive a “consumer protection” order. The company emphasized that no customer has reported issues regarding the term “Autopilot.” After the two-month period, Tesla has the option to appeal the ruling. If the company takes suitable action concerning the term “autopilot,” the penalties could be rescinded.

The DMV is yet to clarify the specific steps it expects Tesla to undertake to resolve the situation.

Previous Investigations and Legal Challenges

Tesla has encountered various inquiries from the California Attorney General’s office, the Department of Justice, and the Securities and Exchange Commission over claims that its marketing misrepresents the capabilities of its partial autonomy features. Furthermore, the company has settled multiple civil lawsuits linked to accidents involving its Autopilot technology.

Potential Impacts on Tesla’s Operations

California is Tesla’s largest market in the U.S.
A temporary sales suspension could jeopardize Tesla’s business model.
The company relies on its Fremont factory for the production of Model 3 sedans.

Current Advancements in Autonomous Driving

This ruling comes during Tesla’s efforts to expand its Robotaxi service in Austin, Texas, where they have removed safety monitors from their test vehicles. Although rides have been offered for six months, these vehicles operate under a different software version than what is available to consumers.