France orders Tesla to end misleading claims about full self driving capabilities

Tesla is under fire in France as the country’s consumer watchdog, the General Directorate for Competition, Consumer Affairs and Fraud Control (DGCCRF), has ordered the automaker to stop what it describes as “deceptive commercial practices." The directive comes in the wake of a detailed investigation that began in 2023, uncovering a series of violations the agency deems harmful to consumers and in breach of French consumer protection laws.

Misleading claims about Autonomy

One of the biggest issues concerns Tesla's promotion of its driver assist features. The DGCCRF singled out the company's advertising of its "fully autonomous driving capability" as misleading consumers into believing it allows for genuine self-driving, which it does not.

In France, Tesla’s Model Y comes equipped with standard Autopilot, while customers can pay €3,800 for the “Improved Autopilot" suite. An additional €7,500 unlocks the so-called “full self-driving" package. However, these systems still require driver supervision, which contradicts the impression that the vehicles are capable of full autonomy. The French government sees this as a serious offence and will increase monitoring and daily fines if not rectified.

Broader consumer rights violations

Aside from the claims of misleading autonomy aims, Tesla was cited for numerous breaches against rights via contract and procedures that undermine consumer rights. Investigators found that vehicle sales contracts often lacked essential information, such as delivery dates, delivery locations, and clear terms for credit-based payments. In some cases, customers were required to make payments before the legally mandated withdrawal period had ended, especially when financing was involved.

The carmaker also did not issue proper receipts for cash payments made in part, denying purchasers simple records of transactions. Moreover, Tesla was also charged with misleading consumers about the availability of certain features and trade-in incentives, and about the timing of refunds for consumers who opted to cancel purchases. Another divisive topic was not being straightforward about delivery arrangements, including timing, location, and method of delivery.

Regulatory deadline and potential penalties

Tesla has four months to resolve these issues, according to the French regulator's final notice. In case the company is unable to do so within this time frame—specifically to correct the false advertising of autonomous capabilities—the company can be fined €50,000 per day. The agency highlighted the seriousness of misstating automation abilities, citing that it is a serious threat to consumer trust and security.

This latest blow adds to Tesla's growing list of regulatory challenges across Europe and the U.S. Scrutiny over the marketing and safety of its driver assistance technologies is increasing.

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