Tesla In Yet Another Legal Soup After German Suit Over Carbon Emission, Data Privacy

  • Tesla Inc TSLA has landed in another legal soup as Germany's largest consumer protection group, the Federation of German Consumer Organizations (vzbv), has filed a lawsuit over alleged misleading advertising and data protection violations.
  • The group said Tesla made misleading advertising statements on how much carbon-dioxide emissions consumers save when purchasing a Tesla electric vehicle.
  • The lawsuit also alleges that the Tesla car's sentry mode records its surroundings, violating the data protection laws, according to the vzbv.
  • "Tesla's Sentry Mode is designed to protect the vehicle. However, Tesla does not mention that data protection-compliant use is practically impossible," says Heiko Dünkel, Head of the Legal Enforcement Team at vzbv. 
  • "Users would have to obtain consent for the processing of personal data from passers-by who happened to walk past the car. Therefore, anyone who uses the function violates data protection law and risks a fine."
  • The vzbv had already warned Tesla in December 2021 and received a partial cease-and-desist declaration about several clauses in the company's data protection declaration. 
  • Tesla has also been alleged by its employees (current/former) to neglect allegations of sexual harassment and racial discrimination.
  • Price Action: TSLA shares are up 1.16% at $730 during the premarket session on the last check Tuesday.
  • Photo via Wikimedia Commons
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