Consumer group says Tesla misled South Korean buyers over FSD software

what happened

Consumer advocacy group Citizens United for Consumer Sovereignty plans to lodge a complaint with the Korea Fair Trade Commission on Thursday. It says Tesla has sold its Full Self-Driving (Supervised) package to tens of thousands of South Korean buyers, despite knowing that most of the cars cannot use it legally. The details come from the complaint, which Reuters has seen.

Tesla Korea's country manager, Seo Young-deuk, told parliament last month that FSD works on roughly 20% of Teslas registered in the country. Those are US-built cars that meet American safety standards recognized under a free trade deal. Most Teslas sold locally are made in China, which has no such arrangement. Tesla only recently began seeking FSD certification for China-built models, even though it has charged for the software for over three years.

The transport ministry said FSD does not meet local safety rules, including requirements that drivers keep their hands on the wheel. The KFTC is already probing Tesla's FSD advertising, and the company has sent written replies. The group wants a temporary cease-and-desist order on FSD marketing for ineligible cars, along with fines.

why it matters

For investors, the case is a regulatory risk: possible fines and limits on how Tesla promotes its driver-assistance subscription in a market where it overtook BMW this year as the top imported brand.

tags

instruments