Tesla Allegedly Misled Thousands Of South Korean Customers About 'Full Self-Driving'

Usually, when we tell you that Tesla has gotten into hot water for misleading folks about its "Full Self-Driving" Level 2 driver assistance system, it has to do with Tesla overstating just how capable of a system it is. That's not the case in South Korea, though, where the Texas-based automaker has allegedly vastly overstated the legality of FSD usage and charged customers for it nonetheless. Now, tens of thousands of Korean Tesla owners are looking for answers.

Tesla apparently markets FSD in South Korea despite the fact that it knows the majority of its cars can't legally use the program in the country, the complaint from an advocacy group alleges. That means it can't be activated on the car. Soon, the complaint will be filed with the Korean Fair Trade Commission, a consumer protection agency, according to Reuters. Tesla will have to answer for why it marketed FSD to prospective buyers for years, even collecting the $6,726 lump-sum payment required for activation, even though it couldn't legally be used.

Currently, just 20% of Teslas registered in South Korea can legally use FSD because they're built in the U.S., according to a preliminary testimony given by Tesla Korea country manager Seo Young-deuk last month. Those specific cars meet U.S. vehicle-safety standards that South Korea recognizes as part of a free trade agreement. The thing is, most Teslas on the road in South Korea are manufactured in China, where no such agreement exists. It was only recently that Tesla started the process of obtaining FSD certification on China-made vehicles, even though it has been charging customers for the software for over three years.

Right now, it's not totally clear how many customers in South Korea bought FSD subscriptions on ineligible vehicles, but the automaker has sold over 170,000 China-made vehicles in the country since 2023, Reuters reports. The company continued to market FSD as sales of ineligible China-manufactured vehicles surged in South Korea in recent years, and last year, 99% of new Teslas sold in the country couldn't legally use FSD.

The complaint alleges that last year, Tesla promoted FSD as "coming soon" and posted a demonstration video filmed in South Korea without clearly disclosing that the tech could only be used in a tiny fraction of the vehicles it was selling, according to Reuters. The consumer advocacy group accused Tesla Korea of deceptive marketing and has asked the KFTC to issue a temporary cease-and-desist order on marketing FSD for ineligible vehicles, impose fines and refer the case to state investigators.

It may be an uphill battle, though. Just last month, a court in Seoul dismissed a lawsuit filed by Tesla owners seeking refunds for the FSD option, Reuters reports. The court rejected the claim that Tesla had failed to deliver the driver-assistance system. Instead, it put the onus of the issue on regulatory and legal restrictions that had limited the company's ability to roll out future functions.

Man, that feels like one weak ahh argument to me.