Tesla faces California suspension following DMV suit for false advertising
The California Department of Motor Vehicles argued during a court hearing last week that Tesla has falsely advertised its “Full Self-Driving” technology, according to Business Insider.
Tesla faces possible suspension of its license to manufacture and sell vehicles in the state, the article says.
A suit was filed by the DMV in 2022, and no final ruling was made following the hearing, according to Business Insider. It alleges that Tesla falsely advertised by using the words “full self-driving” and “autopilot.”
According to the article, Tesla’s defense team argued that the “company never tried to conceal the fact that its vehicles cannot fully drive themselves.” They stated that Tesla always told buyers they cannot fully rely on Full Self-Driving or Autopilot features.
The DMV’s complaint states that Tesla’s website advertised its driving features as being “designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat.”
Business Insider reports that Bryant Walker Smith, a voting member of the Society of Automotive and Aerospace Engineers, testified during last week’s hearing, stating the line separating driver assistance and automated driving features is “a dam that separates the land from the sea.”
The article reports Smith testifying, “Every driver needs to know without ambiguity or doubt or any confusion an answer to this basic question: am I driving?”
Stephen Nowliss, a Washington University in St. Louis marketing professor, testified as a witness for Tesla, saying a survey he conducted found consumers were not confused by Tesla’s terminology.
Kelley Blue Book reports that the administrative judge has 60 days to issue a proposed decision, which could be subject to further appeal.
China recently issued ethical guidelines for autonomous driving technology, including bans on false information in research results.
Earlier in the summer, China banned automakers from using the terms “autonomous driving” and “smart driving” in advertisements.
It comes after a fatal crash involving Xiaomi’s SU7 sedan that has triggered safety concerns, Reuters reports.
“Preliminary findings showed the Xiaomi car caught fire after hitting a cement roadside pole at a speed of 97 kph (60 mph), seconds after its driver took over control from the advanced driving assistance system (ADAS),” Reuters says.
Forbes reports that while the cause of the crash is unclear, Chinese regulators’ reaction is that drivers need to know what their car can actually do. It notes that the UK government’s 2024 Automated Vehicles Act made it an offense to use misleading language in marketing such technologies.
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