The California Department of Motor Vehicles said deceptive advertising of its driver-assistance technology using the term “autopilot” could lead the state to ban Tesla Motors from selling cars for 30 days.
According to the DMV, an administrative law judge found on November 20 that Tesla’s use of “autopilot” and “full self-driving capability” misled customers by exaggerating the capabilities of what the judge referred to as the company’s “advanced driving assistant features.” The judge found that the marketing violated state consumer-protection and advertising laws.
California to potentially ban Tesla sales for 30 days
The judge suggested a 30-day suspension of Tesla’s manufacturing and dealer licenses in the ruling. However, the DMV stated that before temporarily suspending Tesla’s dealer license, it would give the company sixty days to rectify its use of the term “autopilot.” Additionally, the agency halted the planned suspension of Tesla’s manufacturing license for good.
“Tesla can take simple steps to pause this decision and permanently resolve this issue — steps autonomous vehicle companies and other automakers have been able to achieve in California’s nation-leading and supportive innovation marketplace,” DMV Director Steve Gordon said.
Tesla has already updated some of its terminology. The company replaced the term “full self-driving capability” with “full self-driving (supervised)” following the DMV’s accusations against the company in November 2023. According to the DMV, those charges were related to Tesla’s marketing strategies from 2021, when the business advertised its cutting-edge driver-assistance system using language that authorities deemed deceptive.
In addition to the disputed terms, the DMV objected to Tesla’s claim that “The system is designed to be able to conduct short and long-distance trips with no action required by the person in the driver’s seat.” Regulators said that statement incorrectly suggested a level of automation the vehicles did not achieve.
“Vehicles equipped with those ADAS features could not at the time of those advertisements, and cannot now, operate as autonomous vehicles,” the DMV said. The case highlights the continuous conflict between automakers and regulators regarding the best way to characterize new driver-assistance technologies. California has established itself as a center for automotive innovation and a strict enforcer of consumer protection regulations, especially when businesses promote technologies that may have an impact on public safety.
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