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Elon Musk faces new legal battle in France: $55,000 daily fines for misleading autonomous driving claims

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  • either deliver on its promises of full autonomous driving capability in all new vehicles—something that seems highly unlikely to happen within the four-month timeframe—or alter its marketing approach to accurately reflect the current limitations of its driver assistance systems.
  • The company has recorded a 67% drop in sales in France during May compared to the same period last year, reflecting a worldwide downward trend that began at the start of this year.
  • For potential buyers of vehicles with advanced driver assistance features, this case serves as a reminder to look beyond marketing claims and understand the actual capabilities and limitations of the technology before making a purchase decision.

The electric vehicle giant is now dealing with a historic lawsuit in France that could cost the company dearly. French authorities have given the American manufacturer four months to comply with consumer protection laws or face penalties of up to $55,000 per day.

French authorities crack down on “misleading marketing practices”

After a lengthy investigation dating back to 2023, France’s consumer protection agency has determined that the automaker has violated French legislation through several commercial practices. The ruling issued this Tuesday specifically targets how the company markets its vehicles’ self-driving capabilities, which the agency claims are exaggerated.

According to the investigation, the manufacturer has been misleading consumers about the actual capabilities of its autonomous driving system. The French authorities also cited other infractions, including failure to refund orders promptly and not providing receipts for cash payments.

The ultimatum: change marketing or deliver full autonomy

The company now faces a clear choice: either deliver on its promises of full autonomous driving capability in all new vehicles—something that seems highly unlikely to happen within the four-month timeframe—or alter its marketing approach to accurately reflect the current limitations of its driver assistance systems.

This isn’t the first time the electric automaker has faced scrutiny over claims about its vehicles’ self-driving abilities. In 2020, Germany’s competition regulatory body filed similar complaints, though the manufacturer ultimately won that legal battle and can continue advertising its cars as autonomous in Germany.

Even in the United States, the company has faced multiple lawsuits from drivers following accidents—some fatal—allegedly caused by failures of its Autopilot system. (I’ve followed several of these cases, and the legal arguments on both sides are fascinating.)

A challenging time for the electric pioneer

This new controversy comes at a difficult moment for the American manufacturer. The company has recorded a 67% drop in sales in France during May compared to the same period last year, reflecting a worldwide downward trend that began at the start of this year.

The French case represents yet another front in the growing global scrutiny of how advanced driver assistance systems are marketed to consumers. What do you think—should car companies be allowed to use terms like “autopilot” and “full self-driving” when the technology still requires active driver supervision?

The outcome of this case could set an important precedent for how autonomous driving features are advertised throughout Europe and possibly beyond. With the autonomous driving market expected to grow significantly in the coming years, clarity about what these systems can and cannot do becomes ever more critical for consumer safety.

For potential buyers of vehicles with advanced driver assistance features, this case serves as a reminder to look beyond marketing claims and understand the actual capabilities and limitations of the technology before making a purchase decision.

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