The California Department of Motor Vehicles (DMV) is actively pursuing the suspension of Tesla's dealer license for one month, alleging the electric vehicle manufacturer has engaged in misleading advertising regarding its Autopilot and Full Self-Driving (FSD) features. This legal dispute, which has been ongoing for years, centers on claims that Tesla has exaggerated the capabilities of its advanced driver-assistance systems (ADAS) and misled consumers. The case is currently undergoing a five-day hearing in California.
The DMV initiated its investigation into Tesla's advertising practices in 2021, formally filing complaints in July 2022. According to the agency, Tesla made "untrue or misleading" claims by naming its ADAS features "Autopilot" and "Full Self-Driving," implying a level of autonomy that the vehicles do not possess. As stated by the DMV, "Vehicles equipped with those ADAS features could not at the time of those advertisements, and cannot now, operate as autonomous vehicles."
Tesla has countered these allegations by asserting that its marketing statements are not misleading, citing numerous disclaimers that require drivers to remain attentive and supervise the systems. The company's attorneys argue that terms like "Full Self-Driving Capability" refer to future potential after software updates, rather than current, fully autonomous functionality. Despite these arguments, an administrative judge ruled in June 2024 that the case could proceed, rejecting Tesla's motion to dismiss.
The potential remedies sought by the DMV are significant, including the suspension of Tesla's license to sell vehicles in California, which is the company's largest U.S. market. The agency may also seek restitution for affected customers. This administrative action runs parallel to other legal challenges Tesla faces, including federal probes into Autopilot-related crashes and class-action lawsuits from consumers making similar false advertising claims.
This ongoing legal battle highlights broader industry discussions surrounding the terminology and marketing of ADAS technologies. Regulators are increasingly scrutinizing how automakers communicate the limitations and capabilities of their driver-assistance systems to ensure public safety and prevent consumer misunderstanding. The outcome of the California DMV's case against Tesla could set a precedent for how autonomous driving features are advertised and regulated in the future.