Country’s antitrust watchdog has slapped 2.8 billion won fine on automaker for false advertising
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by Chris Chilton
4 hours ago
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by Chris Chilton
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Tesla is often praised for the impressive driving distances it quotes for its EVs, but regulators in South Korea haven’t been congratulating the automaker with a slap on the back. Instead they’ve slapped Tesla on the wrist for false advertising and levied a 2.8 billion ($2.2 million) fine.
Korea’s antitrust watchdog, the Korea Fair Trade Commission (KFTC) says Tesla exaggerated the driving range and charging speeds of its EVs, while also overstating the money customers could save on fuel costs versus other cars.
According to a statement by the KFTC, Tesla had been over-optimistic about the “driving ranges of its cars on a single charge, their fuel cost-effectiveness compared to gasoline vehicles as well as the performance of its Superchargers” on its Korean-market retail site from late 2019 until early 2022.
The KFTC opened its investigation in February 2022, prompting Tesla to add a disclaimer to its Korean website that isn’t seen on other country’s pages. As seen on the page for the Model 3 in the image above, the note advises customers that electric vehicle range can be affected by weather and driving style, though doesn’t say by how much. The watchdog however, believes range can be reduced by as much as 51 percent in cold weather versus claimed numbers.
In addition to the 2.8 billion won fine, Bloomberg reports that watchdog will relieve Tesla of a further 1 million ($798k) for violating the country’s Electronic Commerce Act, claiming that the automaker failed to provide buyers with sufficient information on its cancellation policy.
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