Tesla Fights Back: Lawsuit Filed Against California DMV Over Autopilot Marketing Labels
Tesla has officially initiated legal action to overturn a California regulatory ruling that classified its “Autopilot” and “Full Self-Driving” (FSD) branding as deceptive marketing.
Challenging the “False Advertising” Label
According to recent legal filings, Tesla sued the California Department of Motor Vehicles (DMV) on February 13. The lawsuit seeks to invalidate a December ruling by the California Office of Administrative Hearings (OAH), which found that Tesla’s marketing practices violated state laws.
The initial ruling followed a complaint from the DMV, asserting that the terms “Autopilot” and “Full Self-Driving” mislead consumers into believing the vehicles possess fully autonomous capabilities. At the time, an administrative law judge criticized the FSD branding as “plainly and factually inaccurate.” While the DMV threatened to suspend Tesla’s manufacturing and sales licenses in California, the penalty was stayed after Tesla agreed to revise certain marketing materials.
Tesla’s Defense: “No Evidence of Consumer Confusion”
In its latest complaint, Tesla’s legal team characterized the DMV’s branding of the company as a “false advertiser” as unfair and baseless. Tesla argues that the regulator failed to provide concrete evidence of actual consumers being misled by the product names.
“Tesla provides repeated and clear disclosures during the vehicle purchase process, explicitly stating that these systems are not fully autonomous,” the defense stated. The company maintains that given these rigorous warnings, it is nearly impossible for a reasonable consumer to misunderstand the system’s current limitations as a Level 2 Driver Assistance System.
The Argument of Regulatory Laches
A key component of Tesla’s legal strategy involves pointing out the DMV’s delayed enforcement. Tesla argues that the DMV has been aware of the “Autopilot” name since 2014 and the “FSD” name since 2016. By allowing the use of these terms for nearly a decade without objection, Tesla contends that the agency’s sudden reclassification of the terms as “misleading” is procedurally inappropriate.
Why This Matters for the EV Industry
This legal battle is being closely watched by the global tech and automotive sectors. The outcome will likely set a significant precedent for how Autonomous Vehicle (AV) technology is branded and regulated in the United States. As the industry moves toward higher levels of automation, the tension between innovative marketing and strict regulatory oversight remains a primary hurdle for manufacturers like Tesla.
