Tesla Faces South Korean Consumer Complaint Over Misleading FSD Marketing

A South Korean consumer advocacy group has filed a complaint with the Korea Fair Trade Commission (KFTC) alleging that Tesla engaged in misleading marketing for its Full Self-Driving (FSD) software in the country. The complaint, reviewed by Reuters, was submitted by Citizens United for Consumer Sovereignty and is expected to be formally filed Thursday.

The core allegation

The complaint centres on Tesla charging customers thousands of dollars for FSD software that is unavailable on most vehicles sold in South Korea. According to the group, Tesla promoted FSD as "coming soon" last year — including publishing a video of FSD operating on local roads — without clearly explaining that the feature would not be available on the majority of vehicles in the market.

During parliamentary testimony last month, Tesla Korea manager Seo Young-deuk confirmed that only about 20 per cent of registered Teslas in South Korea can actually use FSD. The eligible vehicles are those manufactured in the United States, which qualify under safety standards recognized through a bilateral free trade agreement. Most Teslas sold in South Korea, however, are manufactured in China — more than 170,000 Shanghai-built vehicles have been sold since 2023.

What the consumer group is asking for

• Regulators to temporarily halt FSD marketing for ineligible vehicles
• Financial penalties against Tesla for misleading advertising
• Referral of the matter to KFTC investigators for a formal inquiry

Context: a broader pattern

The complaint follows a string of FSD-related issues in South Korea. Just days earlier, a South Korean court dismissed a lawsuit seeking refunds from Tesla customers over unfulfilled FSD promises. Before that, South Korean police carried out a crackdown on unauthorized FSD activations, referring 80 people to prosecutors for using aftermarket devices to unlock the software on ineligible vehicles.

The timing is also notable: the complaint arrives weeks after Tesla sought approval to enable FSD on China-made vehicles in South Korea, and days after Tesla received regulatory approval for assisted driving changes in Europe ahead of a wider rollout.

What this means for Canadian Tesla owners

FSD (Supervised) is available in Canada, alongside the United States, Mexico, Australia, New Zealand, South Korea, and ten European markets. Canadian owners can activate the feature on supported vehicles today. However, the South Korean complaint highlights a broader issue: the gap between how FSD is marketed and which vehicles can actually run it. If the KFTC finds Tesla's marketing misleading, it could set a precedent that other consumer protection agencies — including Canadian ones — might follow.

Looking for EV deals, insurance, or financing? Check out our partner deals and offers.

If you found this guide helpful, use our Tesla referral link for free Supercharging credits on a new Tesla purchase or lease in Canada.