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Tesla faces South Korea consumer complaint over FSD marketing; KFTC already probing, complaint to be filed Thursday (Nov 4)

What happened

A Reuters exclusive reports that South Korean consumer advocacy group Citizens United for Consumer Sovereignty plans to file a complaint with the Korea Fair Trade Commission (KFTC) on Thursday alleging Tesla misled tens of thousands of Korean customers about its Full Self-Driving software. The complaint — seen by Reuters and not previously reported — says Tesla marketed FSD knowing it cannot legally be used in most of its vehicles in the country (only ~20% of registered Teslas, the U.S.-built ones, qualify under the U.S.-Korea FTA safety recognition). A KFTC official confirmed the agency launched a probe earlier this year into Tesla's FSD advertising and has received written Tesla responses. The group asked the KFTC to issue a temporary cease-and-desist on FSD marketing, impose administrative fines, and refer the case to state investigators.

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Who’s affected

  • TSLA (directly exposed: regulatory/legal risk in an Asian market, potential fines, marketing restrictions and referral to criminal investigators
  • FSD monetization model under question)
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Summaries and audio are produced with AI from the linked sources and may contain errors. Not investment advice.