The Italian Competition Authority has launched investigations into four major electric vehicle (EV) manufacturers—BYD Industria Italia s.r.l., Stellantis Europe S.p.A., Tesla Italy s.r.l., and Volkswagen Group Italia S.p.A.—over potential unfair commercial practices.
The probe focuses on the accuracy and transparency of the information these companies provide to consumers regarding EV driving range, battery capacity degradation, and limitations on standard battery warranties, as outlined in the Consumer Code.
Concerns Over Misleading Information
The Authority alleges that the companies’ websites presented generic and, at times, contradictory details on the driving range of their EVs. These websites reportedly failed to clarify the various factors that influence an EV’s actual driving range, such as temperature fluctuations, air conditioning usage, and route conditions.
Additionally, the investigation points to a lack of clear and comprehensive information regarding battery capacity degradation due to regular vehicle use. The automakers are also accused of not adequately explaining the terms and restrictions of their standard battery warranties, potentially misleading consumers about the long-term performance and reliability of their vehicles.
Regulatory Action and Potential Penalties
In response to these concerns, officials from the Italian Competition Authority, supported by the Special Antitrust Unit of the Italian Financial Police (Guardia di Finanza), conducted inspections at the Italian headquarters of BYD, Stellantis, Tesla, and Volkswagen on Thursday.
Under Italian consumer protection laws, violations can result in fines ranging from €5,000 to €10 million ($5,230 to $10.46 million). The ongoing investigation aims to determine whether the automakers engaged in deceptive marketing practices in violation of the Consumer Code.
Company Responses
Stellantis has publicly stated its full cooperation with the Authority, asserting that it has provided all necessary answers, information, and documentation to support its compliance, Reuters reported. “Stellantis places the needs and satisfaction of its customers at the center of all its activities and believes that the ongoing investigation will confirm this,” the company said in a statement.
In contrast, BYD and Volkswagen have declined to comment on the matter, while Tesla has yet to respond to media inquiries.
Industry Implications
This investigation highlights the increasing regulatory scrutiny facing EV manufacturers regarding transparency in marketing practices. As the EV market continues to expand, consumer trust in vehicle performance claims remains a critical factor. Regulatory bodies worldwide are closely monitoring how companies communicate key product specifications, especially in an industry driven by rapid technological advancements and evolving consumer expectations.
The findings of this investigation could have broader implications for the EV industry, potentially prompting stricter regulations and greater accountability for automakers in how they disclose essential product information.
