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Why Tesla Faces Crackdown $58K Daily Fine Over Its Marketing
Why Tesla Faces Crackdown $58K Daily Fine Over Its Marketing

Miami Herald

time12 hours ago

  • Automotive
  • Miami Herald

Why Tesla Faces Crackdown $58K Daily Fine Over Its Marketing

The French Ministry of the Economy has threatened to hit Tesla with a $58,000 daily fine if the automaker doesn't end what the department considers deceptive commercial practices. France is the latest country to take issue with the Tesla Full Self-Driving (FSD) feature's name since the software isn't fully autonomous or operating at Level 5 autonomy. The ministry's investigation began in 2023 following reports to France's consumer complaint service SignalConso. In addition to ruling that Tesla was responsible for misleading business practices regarding the fully autonomous driving capacity of its vehicles and the availability of certain options and trade-in offers, the department viewed Tesla as not specifying the date, deadline, or location for car deliveries, not detailing if a purchase was made on credit, and having customers make payments before the withdrawal period enjoyed by the consumer when they finance their purchase with an assigned credit ended, according to Electrek. Additionally, Tesla was described as not providing receipts when customers made partial cash payments and not rightfully refunding within the deadlines for orders. Tesla has four months to comply with the ministry's order before fines begin. In April, China began cracking down on Tesla's FSD marketing with new rules banning car companies from using words like "self-driving," "autonomous driving," "smart driving," and "advanced smart driving." Instead, China's government recommended automakers describe features like FSD as "combined assisted driving." This regulation arrived after Tesla had already changed FSD's name in China to "Intelligent Assisted Driving" following its China launch, implying the transition occurred as the investigation unfolded. While Tesla doesn't face any federal ban on its FSD terminology in the U.S., California lawmakers banned the company from using the marketing terminology in 2022. An excerpt from California's law reads: "A manufacturer or dealer shall not name any partial driving automation feature, or describe any partial driving automation feature in marketing materials, using language that implies or would otherwise lead a reasonable person to believe, that the feature allows the vehicle to function as an autonomous vehicle, as defined in Section 38750, or otherwise has functionality not actually included in the feature," according to Autobody News. FSD is also hitting roadblocks in Stockholm, Sweden, as the city's officials have rejected Tesla's request to test the tech in its streets. Stockholm's traffic department cited safety risks to its citizens and infrastructure and "heavy pressure from other ongoing innovation tests," Teslarati reports. In Australia, an ongoing lawsuit filed in February accuses Tesla of overpromising on self-driving features while flagging other issues like instances of phantom braking. Tesla's regulatory scrutiny from France is part of a global trend targeting the automaker's sales practices. The $58,000 fine Tesla faces from France's Ministry of the Economy, China's new guidelines, and California's ban show how consumer protection is becoming more critical as daily driving functions become increasingly automated and confusion about their capabilities grows. However, Tesla's recent sales struggles could impact its decision to play ball in hopes of maintaining accessibility to major global markets. Copyright 2025 The Arena Group, Inc. All Rights Reserved.

Automakers selling cars in China banned from using 'autonomous driving' in ads
Automakers selling cars in China banned from using 'autonomous driving' in ads

Yahoo

time17-04-2025

  • Automotive
  • Yahoo

Automakers selling cars in China banned from using 'autonomous driving' in ads

China is cracking down on how automakers advertise driver-assistance features, banning terms like "autonomous driving," "self-driving," and "smart driving," Reuters reported, citing a transcript of a meeting between the government and industry representatives. The updated rule will also prohibit automakers from rolling out improvements via software updates to advanced driver-assistance systems in vehicles already in the hands of customers. Automakers must now test any upgrades or new features in ADAS and receive government approval before rolling it out via software update. Wireless software updates that improve or fix features in vehicles — and first popularized by Tesla — have become a critical capability for automakers trying to stay competitive. The mandate stems from growing concerns over vehicle safety and incidents of fatal crashes involving advanced driver-assistance systems. Last month, a Xiaomi Su7 sedan caught fire after crashing into a pole just seconds after the driver took over control from the ADAS. It also follows Tesla's rollout of its "Full Self-Driving software" branding used for its advanced driver-assistance system. FSD is not a self-driving system and requires a human driver to remain engaged. In China, Tesla changed the FSD name to "Intelligent Assisted Driving."

Automakers selling cars in China banned from using 'autonomous driving' in ads
Automakers selling cars in China banned from using 'autonomous driving' in ads

Yahoo

time17-04-2025

  • Automotive
  • Yahoo

Automakers selling cars in China banned from using 'autonomous driving' in ads

China is cracking down on how automakers advertise driver-assistance features, banning terms like "autonomous driving," "self-driving," and "smart driving," Reuters reported, citing a transcript of a meeting between the government and industry representatives. The updated rule will also prohibit automakers from rolling out improvements via software updates to advanced driver-assistance systems in vehicles already in the hands of customers. Automakers must now test any upgrades or new features in ADAS and receive government approval before rolling it out via software update. Wireless software updates that improve or fix features in vehicles — and first popularized by Tesla — have become a critical capability for automakers trying to stay competitive. The mandate stems from growing concerns over vehicle safety and incidents of fatal crashes involving advanced driver-assistance systems. Last month, a Xiaomi Su7 sedan caught fire after crashing into a pole just seconds after the driver took over control from the ADAS. It also follows Tesla's rollout of its "Full Self-Driving software" branding used for its advanced driver-assistance system. FSD is not a self-driving system and requires a human driver to remain engaged. In China, Tesla changed the FSD name to "Intelligent Assisted Driving." Sign in to access your portfolio

Tesla Removes ‘FSD' Name From Its Autonomous Tech in China After Regulators Halt Program
Tesla Removes ‘FSD' Name From Its Autonomous Tech in China After Regulators Halt Program

Yahoo

time27-03-2025

  • Automotive
  • Yahoo

Tesla Removes ‘FSD' Name From Its Autonomous Tech in China After Regulators Halt Program

Stricter oversight from China's government has forced Tesla to change the name of its Full Self-Driving (FSD) technology, which isn't actually fully autonomous. In China, FSD, which operates at a Level 2 out of the Society of Automotive Engineers (SAE) 5 self-driving levels, will now be marketed under 'Intelligent Assisted Driving' instead of its previous 'FSD Intelligent Assisted Driving' label. News of the name change arrived a couple of days after China suspended Tesla's free FSD trial in the country one week after its launch. The autonomous technology's free trial was initially scheduled to run from March 17 to April 16, allowing Tesla's Chinese customers to use the program on urban roads. Tesla's limited FSD run in China debuted to mixed reviews, with documented instances of the technology collecting fines for breaking the law. Situations commonly resulting in fines included FSD-engaged Teslas driving in bike lanes and making illegal turns, according to Electrek. One driver collected seven tickets in a single outing with FSD. China monitors many of its roads via CCTV cameras, with fines automatically given to lawbreakers. The EV maker's 'Enhanced Version Automated Assisted Driving' feature also changed its name in China to 'Enhanced Assisted Driving' while the free basic self-driving software, 'Basic Version Assisted Driving,' or Autopilot in the US, tweaked its name to 'Basic Assisted Driving.' Tesla sells its Intelligent Assisted Driving system in China for RMB 64,000 ($8,818.59), and its China customers with Enhanced Autopilot (EAP) can upgrade to Intelligent Assisted Driving for a slightly lower sum of RMB 32,000 ($4,409.29). The EV maker altered its overall description of these features in China from 'Autopilot Automated Assisted Driving' to 'Assisted Driving.' Name changes in China aren't the only time Tesla's autonomous technology labels have garnered government attention. In 2022, California passed a law banning Tesla from calling its software FSD, with the state's Department of Motor Vehicles (DMV) describing the name as false advertising. An excerpt from Senate Bill No. 1398 states: 'A dealer or manufacturer [in California] shall not sell any new passenger vehicle that is equipped with any partial driving automation feature or provide any software update or other vehicle upgrade that adds any partial driving automation feature, without, at the time of delivering or upgrading the vehicle, providing the buyer or owner with a distinct notice that provides the name of the feature and clearly describes the functions and limitations of the feature.' Tesla FSD requires drivers to keep both hands on the wheel and remain aware of the road and other cars at all times to take over in an emergency. New regulatory rules enacted in late February by China's industry ministry require Tesla and all other automakers with autonomous programs to submit detailed technical information before remotely releasing a software update to their fleet. Autoblog contacted Tesla for comment but did not receive an immediate response. For years, Tesla has been attracting questions and criticism for the way it markets its FSD technology, so it's clear the EV maker is sticking to its guns unless governments force its hand. Still, Tesla has larger issues in China to contend with, as training its self-driving programs to handle the country's roads has proven challenging given China's strict data laws.

Tesla Forced to Change Name of "Full Self-Driving" in China, Since Its Cars Can't Fully Drive Themselves
Tesla Forced to Change Name of "Full Self-Driving" in China, Since Its Cars Can't Fully Drive Themselves

Yahoo

time26-03-2025

  • Automotive
  • Yahoo

Tesla Forced to Change Name of "Full Self-Driving" in China, Since Its Cars Can't Fully Drive Themselves

Tesla is being forced to change the name of its so-called "Full Self-Driving" driver assistance feature in China. As spotted by Electrek, the Elon Musk-led company is now going by the name "Intelligent Assisted Driving" in Chinese on its website. The news comes days after the carmaker abruptly suspended a free trial of its infamous software in China. "All parties are actively advancing the relevant process and we will push it to you as soon as it is ready," Tesla's customer support account wrote on Chinese social media platform Weibo, as translated by Reuters. "We are also looking forward to it, please wait patiently." Tesla has run into major headwinds while trying to roll out the software in China, where regulators can have a heavier hand than in the United States. Last month, insider sources told the Financial Times that Chinese regulators had informed them that the timeline for FSD approval was "indefinite," despite previously indicating that it would be approved by this spring. The software itself appears to be suffering from some potentially dangerous flaws. Drivers had been testing the software — before it was paused — on public streets in China, racking up a huge number of fines. Chinese Tesla owners have found that the system is misinterpreting bike lanes as right turn lanes, running red lights, and hogging bus lanes illegally, as Electrek reported last month. The carmaker has already run afoul of regulators for its misleading naming convention — after all, as Tesla admits on its website, the "Full Self-Driving" feature doesn't make good on its promise of fully autonomous driving and requires drivers to be ready to take over at all times. In 2022, the California DMV alleged that Tesla put out "untrue or misleading" advertisements on its website in relation to its Full Self-Driving and Autopilot tech. In 2023, former transportation secretary Pete Buttigieg also called out the company, saying that the name of the system lacks "common sense." However, Tesla still uses both monikers in its marketing materials in the US and many other parts of the world. Besides changing the FSD feature's name to better reflect reality, Tesla also removed the word "Autopilot" from the Chinese name, according to Electrek. The entry-level software, which is included in the base price of the vehicle, is now called "Basic Assisted Driving." In short, it's a change that Tesla should've made worldwide years ago. For almost a decade, Tesla has been marketing its driver assistance software using misleading language. That's likely already had severe consequences. US regulators have linked the carmaker's software to hundreds of collisions and dozens of deaths, warning that Tesla's marketing is lulling its customers into a false sense of security. Where that leaves Tesla's attempts to bring its driver assistance features to the Chinese market remains to be seen. There's a good chance the latest name change signifies Tesla falling in line with the demands of Chinese regulators. The company is still committed to rolling out the software in the country, pending regulatory approval — but that's turning out to be a lot easier said than done. More on FSD: Tesla Suddenly Suspends Full Self-Driving Trial in China

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