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South Korean consumer group Citizens United for Consumer Sovereignty has filed a complaint with the Korea Fair Trade Commission over Tesla selling Full Self-Driving to customers whose cars cannot activate the software. About 80% of Teslas sold in South Korea since 2023 are reportedly ineligible because of restrictions tied to where they were manufactured. The complaint follows a court ruling against owners seeking refunds, but the regulator has already opened a separate advertising probe.
South Korean consumer group Citizens United for Consumer Sovereignty has filed a complaint with the Korea Fair Trade Commission over Tesla selling Full Self-Driving (FSD) to customers whose cars cannot activate the software, according to Reuters. The complaint shifts the dispute from owners’ failed refund lawsuit to a question of how Tesla advertised and sold the feature.
The complaint, reviewed by Reuters, alleges that Tesla continued collecting payment for FSD in South Korea for more than three years even though import restrictions kept many buyers from enabling it. The report says customers paid as much as $6,800 for the feature. That allegation is now before the competition regulator; filing a complaint does not establish that Tesla broke consumer or advertising rules.
According to the original report, about 20% of Teslas registered in South Korea are eligible to activate FSD. Those vehicles were assembled in the United States and meet U.S. Federal Motor Vehicle Safety Standards, which a trade agreement recognizes for entry into South Korea without further modification. Most other Teslas in the country were built in China, where the report says the necessary agreement or additional safety certification for the software is not in place.
The dispute follows a court loss for 88 Tesla owners who sought full refunds in a lawsuit filed in 2024. The Seoul Central District Court rejected their claims, ruling that Tesla had not technically breached its contractual obligations. The court’s reasoning, as reported by the South China Morning Post, was that buyers knew delivery of promised functions depended on technical advances and regulatory approval that could take considerable time.
A New Route for Buyer Complaints
The complaint raises a different issue from whether Tesla owes particular owners a refund under their sales contracts: whether the company’s advertising and sales practices gave customers a fair understanding of what they could use. A regulator could examine consumer-facing claims even after a court has rejected a group of refund requests, though no finding against Tesla has been reported.
For buyers, the distinction matters because eligibility reportedly depends in part on where the vehicle was manufactured, not only on paying for the software. Customers considering FSD in South Korea may want to establish whether a specific car can activate it before buying. The case also puts the focus on how companies describe software that depends on regulatory approval and technical conditions.
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Why Many Korean Teslas Cannot Activate FSD
South Korea’s rules create a split between eligible U.S.-built Teslas and many China-built imports. Reuters reported that Tesla imported about 170,000 Shanghai-built vehicles into South Korea since 2023, while the original report says the number of Chinese-built cars entering the market rose five-fold last year. Those vehicles are reportedly unable to activate FSD under current restrictions.
The complaint comes amid separate scrutiny of Tesla’s advertising. The Korea Fair Trade Commission told Reuters it had launched an advertising probe earlier in 2026, but declined to comment further. Tesla did not respond to Reuters’ request for comment, according to the report. The complaint and the existing probe are related to advertising concerns, but the available reporting does not establish whether they are part of the same proceeding.
Some owners have reportedly tried to enable region-locked FSD through software modifications described as “jailbreaks.” The original report says South Korean authorities view these as safety circumventions and that owners could face fines of up to $15,000 or jail time. That reported enforcement risk is separate from the regulator’s review of Tesla’s sales and advertising.
What the Regulator Will Examine
The complaint’s filing does not show whether the Korea Fair Trade Commission will open a new case, add the allegations to its existing advertising probe, or take enforcement action. The agency has not publicly described the scope or status of its investigation in the cited reporting.
It is also unclear what wording buyers saw when they purchased FSD, whether the software’s ineligibility was disclosed in each sale, and whether the regulator will distinguish among vehicles based on their manufacturing origin. Tesla has not provided a response to Reuters, so its account of the sales, disclosures and restrictions is not included in the reporting.
Regulatory Review and Possible Findings
The next public development is likely to come from the Korea Fair Trade Commission, which may clarify whether it is reviewing the consumer group’s allegations within its existing advertising probe. No timetable, finding or planned enforcement step has been reported. Until the regulator provides more information, the complaint remains an allegation rather than a ruling that Tesla violated the law.
Buyers and current owners will also be watching for any change in the restrictions affecting China-built vehicles. The available reports do not say when, or whether, those cars could become eligible to activate FSD. The court’s decision addressed the refund claims of the 88 plaintiffs; it does not determine the outcome of the regulator’s review.
Key Questions
What is the complaint against Tesla about?
Citizens United for Consumer Sovereignty alleges Tesla sold FSD to South Korean customers even though restrictions prevented many vehicles from activating it. The complaint asks the Korea Fair Trade Commission to examine the company’s sales and advertising practices.
Why can many Teslas in South Korea not use FSD?
According to the reporting, eligibility is tied partly to manufacturing origin and applicable safety standards. About 20% of Teslas registered in South Korea, mainly U.S.-built vehicles, are reportedly eligible; many China-built imports are not.
Did Tesla owners win their refund lawsuit?
No. The Seoul Central District Court rejected the claims of 88 owners who sought refunds. The court ruled Tesla had not technically breached its contract, citing the time that technical development and regulatory approval could take.
Has the regulator found Tesla violated the law?
No such finding has been reported. The consumer group has filed a complaint, and the Korea Fair Trade Commission has confirmed a separate or related advertising probe, but its conclusions and next steps are not public.
Source: insideevs.com
