San Francisco – On Monday, U.S. District Judge Haywood Gilliam ruled in favor of Tesla Motors, dismissing a lawsuit that alleged the company misled consumers about the capabilities of its Autopilot advanced driving assistance system (ADAS).
The class action lawsuit, brought by a group of Tesla vehicle owners, claimed that Tesla’s marketing exaggerated the abilities of Autopilot, giving drivers a false sense of security that the vehicles could drive themselves even though drivers are required to remain alert and ready to take control. The plaintiffs also argued that Tesla misrepresented the safety benefits of Autopilot.
In his ruling, Judge Gilliam found that the plaintiffs had agreed to binding arbitration when purchasing their Tesla vehicles, and therefore could not pursue claims in a court lawsuit. Binding arbitration clauses have become common in many consumer contracts, preventing participation in class actions.
While a victory for Tesla, the dismissal on procedural grounds means the substance of the consumer claims remains unsettled. The plaintiffs say they plan to appeal the decision.
Tesla has faced growing scrutiny over Autopilot, which has been involved in several high-profile crashes. However, the company maintains that the system significantly improves safety when used properly, with driver supervision.
The lawsuit dismissal follows other recent legal wins for Tesla, as the company continues its rapid growth into the mainstream auto market. However, safety advocates caution that relying on arbitration agreements denies consumers access to the court system, keeping vital auto safety issues out of the public eye.
Going forward, regulators are likely to take greater interest in Autopilot’s capabilities and limitations, as advanced driver assistance systems become more prevalent across the auto industry.
