Consumer Group Alleges Tesla Sold South Korean Customers Automated Driving Software Unusable Under Local Law

A South Korean consumer group has filed allegations that Tesla misled customers in the country by selling driver software that the vast majority of vehicles cannot legally use, according to a Reuters exclusive published on November 4. The complaint centers on Tesla's automated driving technology, which the group contends was marketed and sold to South Korean buyers despite regulatory and legal constraints that prevent most cars from operating the software on public roads.

The allegation adds a new dimension to Tesla's ongoing legal exposure in South Korea over its self-driving claims. Just days earlier, on October 29, the Seoul Central District Court had rejected a separate lawsuit filed by 88 to 89 Tesla owners who sought refunds of up to 9 million won (roughly $5,800 each) for the Full Self-Driving package, with the court ruling that Tesla had not breached its contractual obligations and had already delivered some capabilities through software updates. The consumer group's fresh allegation shifts the focus from contractual performance to deceptive sales practices, specifically the question of whether Tesla disclosed that the software it was charging for could not legally be activated in South Korea.