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South Korean consumer advocacy group Citizens United for Consumer Sovereignty has complained to the Korea Fair Trade Commission about Tesla’s sale and advertising of Full Self-Driving software. Reuters reported that about 80% of Teslas sold in South Korea since 2023 are ineligible to activate FSD because of import and certification restrictions. The regulator has already confirmed an advertising probe, but it has not said whether the new complaint will lead to enforcement action.
Citizens United for Consumer Sovereignty, a South Korean consumer advocacy group, has filed a complaint with the Korea Fair Trade Commission alleging Tesla took payment for Full Self-Driving software that many local buyers cannot activate. The complaint renews scrutiny of Tesla’s sales and advertising after a court rejected a separate refund lawsuit, while the regulator has confirmed it is already examining Tesla advertising.
Reuters reported that the complaint alleges Tesla continued collecting money for FSD for more than three years even though import-related restrictions prevented many buyers from using the software. The complaint, reviewed by Reuters, concerns a feature that buyers could pay as much as $6,800 to obtain. Tesla did not respond to Reuters’ request for comment, according to the report.
The access limits are tied in part to where vehicles were built. Reuters reported that about 20% of Teslas registered in South Korea are eligible to activate FSD; these are vehicles assembled in the United States. U.S.-built vehicles meet U.S. Federal Motor Vehicle Safety Standards, which a trade agreement recognizes for entry into South Korea. Many other Teslas were built in China, and the source report says no corresponding agreement or supplementary safety certification currently permits their FSD software to be activated there.
Tesla has imported about 170,000 Shanghai-built vehicles since 2023, according to the source report. Some owners have reportedly sought to bypass the regional restriction with software modifications described as “jailbreaks.” South Korean police have taken action against owners using such methods, with potential penalties reported as fines of up to $15,000 or jail time. The complaint itself does not establish that Tesla encouraged or authorized those modifications.
Scrutiny Shifts to Tesla’s Advertising
The complaint puts the focus on whether Tesla’s sales and advertising disclosures adequately explained that FSD availability depends on vehicle origin, certification and regulatory approval. That is a different question from whether individual buyers can obtain refunds under their contracts. A regulator could examine how the software was presented to consumers even after a court found against a group of owners seeking repayment.
For South Korean Tesla customers, the issue is practical as well as financial: a buyer may have paid a substantial additional amount for software that is not currently usable on their vehicle. The reported restrictions also create pressure to avoid unofficial workarounds, which can carry legal and safety risks. The complaint may clarify what buyers were told before purchase and what remedies, if any, consumer-protection rules provide.
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Vehicle Origin Shapes FSD Access
FSD is Tesla’s driver-assistance software, not a system that removes the driver’s responsibility. The source report says Tesla has used the “Full Self-Driving (Supervised)” name for more than two years, following a period when the product was labeled beta. Whatever the branding, drivers remain responsible for supervising the vehicle and responding while it is in use.
A separate lawsuit brought by 88 Tesla owners sought full refunds for FSD purchases. The Seoul Central District Court rejected the case, according to the source report. The South China Morning Post reported that the court found Tesla had not breached its contractual obligations, reasoning that buyers were aware feature delivery depended on technical progress and regulatory approval that could take considerable time. That ruling addressed the owners’ claims in that lawsuit; it does not by itself settle the advertising questions now raised with the KFTC.
Regulator’s Response Is Not Yet Known
It is not yet clear whether the new complaint will trigger a separate investigation, be folded into the KFTC’s existing advertising probe, or lead to penalties or other action. The commission has not publicly detailed the earlier probe, and the source report says it declined further comment. Tesla has not provided a response to Reuters.
The complaint’s allegations have not been adjudicated. The available reporting also does not specify the exact disclosures made to each buyer, how many purchasers paid for FSD on ineligible vehicles, or whether any affected cars could become eligible if regulations or certifications change. The court ruling concerned contractual refund claims by 88 owners, not a final decision on the consumer group’s advertising allegations.
KFTC Review Could Set the Course
The next material development would be a statement from the Korea Fair Trade Commission on whether it will investigate or take action on the complaint. The agency could also clarify how the filing relates to its earlier Tesla advertising probe. Until then, buyers should not assume that the complaint changes current software access or establishes a right to a refund.
Tesla’s response, any additional information from the consumer group, and possible regulatory findings may clarify what was disclosed at the point of sale and whether the company’s marketing complied with South Korean rules. No timetable or enforcement decision has been reported.
Key Questions
What does the South Korean complaint allege?
Citizens United for Consumer Sovereignty alleges Tesla collected money for FSD from buyers even though many locally sold vehicles could not activate the software because of import and certification restrictions. The allegation has not been decided by the regulator.
Why can many Teslas in South Korea not activate FSD?
According to the source report, eligibility is tied partly to the vehicle’s manufacturing origin and applicable safety certification. U.S.-assembled vehicles are reported to be eligible, while many China-built vehicles lack the relevant approval for FSD activation in South Korea.
Did a court already rule on the issue?
A Seoul court rejected a separate lawsuit by 88 Tesla owners seeking refunds. The ruling concerned their contractual claims; it did not decide the advertising allegations in the new complaint.
Is Tesla under a regulatory advertising probe?
The KFTC confirmed to Reuters that it launched a probe into Tesla advertising earlier this year. It declined to provide further details, and it is not yet clear how the new complaint relates to that probe.
Source: insideevs.com
