Archive for Tesla Magnuson Moss

Tesla Faces Class Action Lawsuit

Disappointed drivers who paid extra to purchase Enhanced Autopilot for their Tesla vehicles say they’ve been misled.  According to the complaint, Tesla allegedly represented its technology as making the car fully self-driving in some situations and on the way to fully self-driving in all situations.  Still, say the plaintiffs, four years have passed, and Tesla has come nowhere near providing the self-driving car it promised.

Filed on September 14 in the federal district court for the Northern District of California, Matsko v. Tesla alleges that Tesla violated the Magnuson-Moss Warranty Act (15 USC Sec. 2301) and specific false advertising laws.  Elon Musk, involved in some relatively well-known disputes with Facebook, is not personally named in the suit.

The complaint alleges that other automakers have surpassed Tesla in delivering fully automated vehicles. Further, this failure to keep up with other manufacturers has made the Tesla vehicles less than they were represented as when advertised and sold. Moreover, plaintiffs allege that Tesla has used misleading and deceptive videos purporting to show a fully self-driving Tesla vehicle.  According to plaintiffs, this is a clear instance of false and deceptive advertising. Instead of producing the promised self-driving software, say the plaintiffs, Tesla simply rolls out new beta software to a few individuals and never provides fully operative self-driving cars to those who were promised them.

Plaintiffs further allege that from various sources, including former employees, they have learned that Tesla has known for years that its self-driving vehicle claims are deceptive and misleading.  Further, Tesla’s precise predictions about its self-driving vehicles have repeatedly failed to meet expectations.  Further, plaintiffs note, the California Department of Motor Vehicles has charged Texla with making untrue, misleading, and deceptive marketing.

In the class action, the class is defined as all US persons who have purchased or leased a new Tesla vehicle with Autopilot, Enhanced Autopilot, or Full Self-Driving Capability.  The class seeks relief for the failure of Tesla to live up to its warranties under Magnuson Moss. as well as various other warranties.  In need, plaintiffs seek injunctive release prohibiting Tesla from making the claims, an award of all damages, including punitive damages, restitution and disgorgement, and reasonable attorneys’ fees.  This could cost Tesla some serious money.