In a significant move against one of the world’s most high-profile electric vehicle manufacturers, French anti-fraud authorities have ordered Tesla’s local subsidiary to cease what they call “deceptive commercial practices.” The order follows a year-long investigation into Tesla’s business operations in France and comes amid broader challenges facing the US carmaker in European markets.
Investigation Uncovers Multiple Consumer Violations
The Directorate General for Competition, Consumer Affairs, and Fraud Control (DGCCRF), which operates under the French Ministry of the Economy, announced on Tuesday, June 24, that its agents had found “several violations harmful to consumers and contrary to law.” The investigation, which ran from 2023 to 2024, was initiated after numerous consumer complaints were filed via a public online platform.
According to the DGCCRF, Tesla misled French consumers in marketing its so-called “fully autonomous driving” technology, as well as in representations regarding optional vehicle features and trade-in offers. The agency also highlighted further breaches, including delays in refunding cancelled orders, incomplete and unclear sales contracts, and a failure to provide transparent delivery information, particularly concerning vehicle delivery locations.
“The deceptive commercial practices relate in particular to claims about the fully autonomous driving capabilities of Tesla vehicles — capabilities that are not yet legally permitted or technically reliable in France or Europe,” the DGCCRF said in a statement.
A Clear Deadline with Financial Penalties
Tesla has been given four months to bring its French business practices into full compliance with national consumer protection laws. If the company fails to act, it will face financial penalties of €50,000 per day until corrective measures are implemented.
This is not the first time Tesla’s marketing around “Autopilot” and “Full Self-Driving” features has attracted regulatory scrutiny. Across several countries — including Germany, the United States, and now France — watchdog agencies and consumer advocacy groups have raised concerns that Tesla overstates what its current driver-assist technologies can safely and legally do.
European Sales Slump Amid Wider Headwinds
The order arrives at a challenging moment for Tesla in Europe. The company’s regional sales have declined sharply in recent months, a trend attributed to a combination of factors: an aging vehicle lineup, growing competition from European and Chinese electric vehicle brands, and negative public sentiment surrounding Tesla CEO Elon Musk’s increasingly controversial political associations — including his support for former US President Donald Trump.
Industry analysts note that while Tesla once led the European EV market, its dominance is now under siege from a new wave of innovative and more affordable electric models. Musk’s personal brand, once seen as an asset, is increasingly viewed as a liability in Europe’s socially conscious consumer landscape.
Tesla Yet to Respond
As of Tuesday evening, Tesla had not publicly responded to the DGCCRF’s findings or the threat of daily fines. The company’s European press office did not immediately return requests for comment.
For now, French authorities say they will continue to monitor Tesla’s compliance — and warn that any further violations could result in additional legal action.
