Advertising Claims and Market Realities in the Auto Sector
In early 2023, the South Korean Fair Trade Commission imposed a fine of 2.2 million dollars on Tesla for misleading advertising. The regulator clarified that the stated range of an electric vehicle on a single charge, as shown in marketing materials, is achievable only under ideal conditions – typically mild temperatures and city driving. This matters to consumers who rely on advertised range to plan trips and daily use.
The case centered on promotional material from 2019 that claimed Tesla vehicles can “run at least several hundred miles” without recharging, without specifying the exact model. The authorities found that in real-world scenarios far from ideal conditions, the actual range can drop by more than half compared with the advertised figure, presenting a significant overstatement to prospective buyers.
Further scrutiny revealed that the advertised charging speed of Tesla’s equipment was also tied to optimal conditions, which may not reflect typical charging environments. Such disclosures are essential for consumers evaluating the practicality of electric vehicles for everyday use, including long trips and varying weather conditions.
As context, the brand had held a major share of Korea’s electric-vehicle market, reaching around 43 percent in 2020, underscoring the impact of its marketing on consumer perception and the importance of accuracy in claims about range and charging performance.
Vote – win Lada!
Readers are invited to participate in the Behind the Wheel Grand Prix survey to help identify standout car introductions of the year. The initiative aims to gather insights on innovations and model features that resonate with Canadian and American drivers alike.
Participants who complete the questionnaire are entered into a drawing as a token of appreciation. The sweepstakes continues through late February, offering a chance to win one of several prizes.
COMPLETE THE 2023 DRIVING GRAND PRIX QUESTIONNAIRE
Note: This engagement section encourages feedback on vehicle performance, design, and practical usability, reflecting how consumer input can shape coverage and recommendations for future auto trends.
End of source note.