The French government has ordered Tesla to correct a series of violations tied to deceptive business practices or face daily fines of 50,000 euros (approximately $58,100) if it fails to comply within four months. The ruling, issued by France’s Directorate-General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF), comes after a year-long investigation triggered by consumer complaints.
The enforcement action cites multiple violations involving Tesla’s vehicle ordering and delivery process in France, including incomplete sales contracts, improper prepayments, failure to issue receipts for partial payments, lack of refund compliance and misleading marketing around the company’s Full Self-Driving (FSD) system. According to French officials, Tesla misled buyers by overstating the capabilities of its autonomous driving technology and providing unclear information about delivery timelines and trade-in offers.
The most serious allegation concerns Tesla’s promotion of its “fully autonomous” driving features, which French regulators determined do not meet the standard implied by the company’s marketing. Despite being marketed under the name “Capacité de conduite entièrement autonome” (Full Self-Driving), the system is classified only as a Level 2 driver-assist feature under international standards. This means the driver must remain in complete control at all times, and the vehicle cannot operate independently.
Compounding the issue, Tesla’s FSD feature is currently not active in France. Although the software has been sold to French consumers for 7,500 euros (about $8,720), customers are unable to use it due to ongoing regulatory hurdles. Authorities also took issue with how the company required payment for vehicles before the customers’ legal withdrawal period ended in cases where financing was used.
The action against Tesla follows growing scrutiny of the company’s sales practices across Europe. In a separate matter, a group of Tesla owners in France is pursuing legal action to exit their leases early, citing dissatisfaction with CEO Elon Musk’s recent political activity.
Tesla has until October to bring its French operations into compliance or begin accruing financial penalties. The case adds to a mounting list of regulatory challenges the company faces globally as it continues to expand its use of advanced driver-assist systems and direct-to-consumer sales models.
