S. KOREA FINES TESLA FOR FALSE ADVERTISING

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The Fair Trade Commission has imposed a fine and ordered corrective measures on EV maker Tesla for exaggerating their advertisements on how much distance the vehicle can cover over a single charge. The FTC said the automaker did not provide further explanation and only stated a distance that's only feasible in optimized conditions, and saw it as deceiving consumers.

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Tesla's premium sedan, the Model S. The automaker advertised on its website that it can cover "more than 487km" on a single charge. However, that's not what drivers say.

[Soundbite] Cho Il-seok(Tesla customer) : "(Is the distance much different in winter?) In winter it runs in the 400km range. When running on highways at high speed, the distance becomes even shorter."

The Fair Trade Commission has found that the advertised range is only possible when the car runs at 25 degrees Celsius or above in downtown areas with its air conditioner and heater off. The FTC says advertising the distance that's only feasible in optimized conditions without providing any further explanation is deceiving consumers. It also took issue with Tesla saying on its U.S. website that the vehicle can run "up to 326 miles," but in Korea it marked the distance using the phrase "more than.“

[Soundbite] Nam Dong-il(Fair Trade Commission) : "Exaggerating vehicle performance that can only be obtained in certain conditions is against the law."

Tesla has also been found to have exaggerated information about fuel saving by saying drivers can save fuel costs by switching to electric cars. It also used information about its latest supercharger before its release in Korea to make it appear as if its cars could cover the same distance when charged with old superchargers.

[Soundbite] Cho Il-seok(Tesla customer) : "Tesla provides no accurate information on how the fuel saving amount was estimated."

The FTC has imposed a fine of some 2.8 billion won on Tesla and ordered the carmaker to take corrective measures for hampering consumers from making a reasonable choice when buying electric cars. The firm has also been fined one million won for its unfair refund policies, such as preventing consumers from canceling their orders online, and unilaterally imposing cancellation penalties.