Tesla’s “Full Self-Driving” label ruled false by California court after consumer survey analysis.
DMV granted 60 days before Tesla’s sales license could be suspended in the state.
Court found Tesla’s Autopilot and FSD terms misled drivers on actual autonomous capabilities.
Tesla has used deceptive language in its marketing of the company’s Full Self-Driving (FSD) system, according to a California judge. The court’s ruling authorizes the Department of Motor Vehicles to suspend the automaker’s state license for 30 days if it fails to make the required changes. The DMV has said it will give Tesla 60 days to comply with the court’s order before initiating any suspension.
The ruling comes after years of scrutiny over Tesla’s driver-assist technologies, which have been marketed under names such as “Autopilot” and “Full Self-Driving” despite not offering full vehicle autonomy. Tesla has sold the FSD system as an optional feature since 2016, though it remains a Level 2 driver-assist system requiring driver supervision at all times.
The California DMV launched an investigation in 2021, citing concerns that Tesla was making inconsistent claims to the public and regulators. In 2022, the DMV issued a formal inquiry alleging that Tesla’s marketing could mislead consumers about the actual functionality of its systems.
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In its findings, the court stated that the term “Full Self-Driving” is “actually, unambiguously false and counterfactual.” The court also criticized Tesla’s use of the word “Autopilot,” stating it followed an “unlawful tradition” of using ambiguous language to mislead consumers while maintaining deniability. Survey data reviewed by the court showed that consumers exposed to Tesla’s marketing believed the vehicles were capable of driving themselves, despite official disclaimers.
The court pointed to Tesla’s use of present-tense language, such as statements that FSD is “designed to be able to conduct short and long distance trips with no action required,” as evidence of misrepresentation. Tesla argued that such language described future goals, but the court rejected this defence based on its context.
If Tesla does not make the required adjustments within 60 days, the DMV may suspend the company’s license to sell vehicles in California. The agency has indicated that any enforcement would focus on the company’s dealer license rather than its manufacturing operations. Tesla manufactures about 500,000 vehicles annually at its Fremont plant and employs approximately 20,000 workers in the state.
Tesla stated after the ruling that “sales in California will continue uninterrupted.”
California has already passed legislation prohibiting automakers from misleading consumers about autonomous features. The court did not order financial penalties, citing the lack of calculable harm.
The ruling could influence other legal proceedings involving Tesla’s FSD marketing, including a class-action lawsuit filed in California alleging consumer deception regarding the system’s capabilities.
Source: electrek
