Summary
- AGCM in Italy is investigating Tesla, BYD, Stellantis, and Volkswagen for unfair commercial practices related to electric vehicles
- The automakers are accused of misleading customers about the performance of their EVs including driving range, battery capacity, and warranty limitations
- AGCM found that the companies’ websites provided contradictory and unclear information about EV performance and battery capacity
- Italy’s financial crimes police joined AGCM in inspecting the automakers’ headquarters in the country
- Separate probes are being conducted by AGCM for each of the automakers under investigation
Article
Italy’s competition authority, Autorita Garante della Concorrenza e del Mercato (AGCM), has launched investigations into Tesla, BYD, Stellantis, and Volkswagen for potential unfair commercial practices related to their electric vehicles. AGCM is looking into allegations that the automakers misled customers about the performance of their electric cars, including issues such as driving range, battery capacity degradation, and warranty limitations. The investigation is based on concerns that the companies provided vague and conflicting information on their websites regarding the advertised maximum range of their EVs without clarifying the factors that could impact the actual range.
AGCM has accused the automakers of not providing clear and complete information about the capacity of their electric vehicles’ batteries, which can degrade over time with regular use. The agency claims that the companies did not adequately explain the limitations of the warranties they offer customers, raising concerns about potential consumer deception. The investigation into Tesla, BYD, Stellantis, and Volkswagen is focused on their operations in Italy, with the competition agency conducting separate probes for each company to examine the alleged violations of the Consumer Code.
On February 20, 2025, AGCM, accompanied by Italy’s financial crimes police, visited the headquarters of each automaker in Italy to conduct inspections as part of the ongoing investigation. The joint efforts of the Italian competition authority and the Guardia di Finanza are aimed at gathering evidence to support the allegations of unfair commercial practices by Tesla, BYD, Stellantis, and Volkswagen regarding their electric vehicles. The outcome of the investigation could have significant implications for the reputation and business operations of the companies involved, as well as the consumer perception of the electric vehicle market in Italy.
The probe initiated by AGCM highlights the increasing scrutiny and regulatory oversight facing automakers in the electric vehicle sector, as the market continues to expand and evolve rapidly. The investigation into Tesla, BYD, Stellantis, and Volkswagen underscores the importance of transparent and accurate information for consumers considering purchasing electric vehicles, given the potential impact on driving range, battery performance, and warranty coverage. The outcome of the investigation will likely have implications for how automakers market and promote their electric vehicles in Italy and beyond, as regulators seek to ensure fair competition and protect consumers from misleading claims.
As the investigation by AGCM unfolds, it is crucial for the automakers involved to cooperate fully with the regulatory authorities and address any concerns raised regarding their marketing practices for electric vehicles. Tesla, BYD, Stellantis, and Volkswagen must demonstrate a commitment to transparency, accuracy, and consumer protection in their communications with customers to maintain trust and credibility in the marketplace. The findings of the probe could lead to sanctions or corrective measures for the companies found in violation of Italy’s Consumer Code, potentially influencing their future business strategies and marketing approaches in the electric vehicle segment. The outcome of the investigation will be closely watched by industry stakeholders, regulators, and consumers alike, as it sheds light on the growing regulatory scrutiny facing automakers in the electric vehicle market.
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