Tesla falsely promoted and exaggerated the driving range and charging speed of its electric cars as well as the estimated savings on fuel costs by using its vehicles, according to a statement from South Korea’s Fair Trade Commission on Tuesday. The Elon Musk-led company changed that advertisement on its Korean-language website last February when the watchdog initiated an investigation.
Tesla Ad Changed in South Korea After Regulator Investigates
The regulator will levy an additional penalty of 1 million won on Tesla for violations of the electronic commerce act, saying the firm didn’t provide enough information to consumers on its cancellation policy. The commission will send a notice to Tesla to correct the activities, according to the statement.
As of end-September, Tesla had sold 45,812 battery-powered vehicles in South Korea since opening a local office in 2015, according to the transport ministry. The sales volume made it the third-biggest green car brand with a local market share of 13%, just behind domestic car makers Hyundai Motor Co. and its unit Kia. BM/DM
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Business Maverick
Tesla fined $2.2m in Korea for false advertising
South Korea’s antitrust watchdog will levy a fine of 2.8-billion won ($2.2 million) on Tesla for alleged violations of the nation’s advertisement law, dealing a setback to the US carmaker that’s seeking to expand its presence in the Asian country.
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