South Korea’s Tesla was slapped with $2 million in a fine for falsely advertising its cold-weather range.

Korean antitrust regulators fine Tesla over $2 million for false advertising.
South Korea’s antitrust regulator announced that it is fining Tesla $2.2 Million for false advertising. The regulators claimed Tesla exaggerated its electric vehicle’s driving range in cold weather. South Korea’s regulator stated that Tesla’s electric vehicle’s range drops by more than 50% when it is cold.

South Korea’s antitrust court fined Tesla 2.85 Billion won ($2.2 Million) for false advertising. The company was accused of exaggerating the range of its vehicles in cold weather. This was reported by multiple outlets, including Reuters.

At a press conference held Tuesday, the Korea Fair Trade Commission stated that Tesla exaggerated its driving range and failed to inform customers that electric cars have shorter driving distances at lower temperatures.

KFTC stated that Tesla exaggerated its “driving ranges, their fuel cost-effectiveness and performance of its Superchargers” on its official website. This was in August 2019.

Nam Dong-il, spokesperson for KFTC, stated at the press conference about Tesla’s “false and exaggerated advertisements” regarding its vehicles.

According to the KFTC, Tesla’s electric cars have a lower driving range in colder weather than advertised online.

Bloomberg reports that the KFTC initiated an investigation and the carmaker modified the advertising on the Korean-language website.

Bloomberg reported that the regulator imposed an additional fine of 1,000,000 won (roughly $800), for violating the country’s Electronic Commerce Act. Bloomberg stated that the firm failed to provide sufficient information to customers about its cancellation policy.

Insider reached out to Tesla and the KFTC for comment but they did not respond immediately.

Citizens United for Consumer Sovereignty in South Korea, a consumer group, stated that electric vehicles have a reduced range when it is colder, especially Teslas. This was according to data from Korea’s Environment Ministry, as per Reuters.

Tesla offers winter driving tips via its website. It advises drivers to prepare their cars and to use the energy app. It doesn’t mention any information about driving in colder temperatures.

According to Bloomberg, Tesla had sold 45.812 electric cars in South Korea in October 2022, since opening its local office in 2015. This makes it one of the most popular green car brands in South Korea, according the Korea’s transport ministry.

Business Insider has the original article.
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By: sbhaimiya@insider.com (Sawdah Bhaimiya)
Title: Tesla has been slapped with a $2 million fine in South Korea over claims it falsely advertised the range of its vehicles in cold weather
Sourced From: www.businessinsider.com/tesla-fined-2-million-by-south-korea-for-false-advertising-2023-1
Published Date: Tue, 03 Jan 2023 12:08:57 +0000