In California, Advertisements Touting Tesla’s Self-driving Cars May Soon Be Illegal

When the year 2023 comes around, a restriction on promoting cars as self-driving if they still need driver supervision will go into effect, according to a bill signed into law by California Governor Gavin Newsom. Although Elon Musk’s carmaker isn’t specifically named, the planned prohibition on autonomous driving advertisements was developed in reaction to the DMV’s dispute with Tesla.

State Senator Lena Gonzalez of Long Beach, frustrated by the absence of legal ramifications for Tesla’s promotion of its electric vehicles as self-driving, has sponsored new legislation to outlaw such marketing. California Governor Gavin Newsom signed it into law, and it will take effect on January 1, 2023, as part of a larger package of new laws.

Any dealer or manufacturer selling a new passenger car with a partial driving automation functionality, as described by the bill, or offering a software upgrade or car upgrade that brings such a function, would be required to provide a consumer notice to the buyer or owner describing the features and their limitations. Any failure to comply with these standards will result in a violation. The law would also make it illegal for a manufacturer or dealer to use misleading names or advertising for these characteristics.

Despite the fact that Tesla isn’t directly mentioned in the legislation, the DMV at one time demanded that Tesla’s dealer license and plates be suspended due to a dispute over the company’s labeling of its $15,000 FSD Beta function as “self-driving.” Lawyers for Tesla argued to the DMV that “simple failure to attain a long-term, aspirational aim is not fraud,” a now-famous remark that came out of talks between Tesla executives and the DMV.

While a federal inquiry into the subject, again beginning in California, is still in the discovery phase, and Tesla faces no impending charges, NHTSA data shows that Tesla cars involved in accidents are occasionally entered on suspicion of Autopilot or FSD Beta activation.

For example, a Model S driver blamed the malfunction of their Tesla FSD system, which allows them to change lanes at will, for a recent eight-vehicle pile-up on the San Francisco Bay Bridge; however, authorities found no evidence of a problem with the autonomous driving system. Drunk drivers have also blamed their crashes on Autopilot, but have since admitted they were at fault.