German Court Bans Tesla Ads Making 'Misleading' Claims About Autopilot, Self-Driving

A German court on Monday banned “misleading” ads from electric vehicle giant Tesla (TSLA) that promote Autopilot and Self-Driving features in the company’s vehicles. The case was brought by Germany’s Wettbewerbzentrale, an organization tasked with fighting anticompetitive business practices.

The regional court, based in Munich, banned further use of phrases such as “full potential for autonomous driving” and “Autopilot inclusive” in future ads by Tesla. The court said the claim might give the buyer the impression that the car can drive without human intervention, which is not yet legally permitted in Germany.

Andreas Ottofuelling, a lawyer for the Wettbewerbzentrale, told Bloomberg that "A legal framework for autonomous inner-city driving doesn’t even exist yet in Germany... And other functions aren’t working yet as advertised.”

Tesla will be able to appeal the ruling. The company has rebranded its “autopilot” feature as “autodrive” in Germany.

Tesla’s autopilot feature has faced scrutiny in the United States. In January, Sen. Edward Markey, D-Mass., urged Tesla to rebrand its autopilot feature and clarify that the vehicles are not fully autonomous. He has also called on the company to add safeguards to the autopilot feature.

“Autopilot is a flawed system, but I believe its dangers can be overcome,” Markey said in a statement. “I have been proud to work with Tesla on advancing cleaner, more sustainable transportation technologies. But these achievements should not come at the expense of safety. That’s why I’m calling on Tesla to use its resources and expertise to better protect drivers, passengers, pedestrians and all other users of the road.”

Three crashes in California, Indiana, and Connecticut between December and January involving Tesla cars have raised red flags about the use of the autopilot feature. Tesla has claimed that drivers who use the feature should pay attention when the system is being used.

Shares of Tesla have recently surged above $1,500. Tesla deliveries fell only 4.9% in the second quarter, better than expected, with CEO Elon Musk also suggesting the company could unveil a new electric hatchback in Europe.