Decide upholds Tesla arbitration settlement that drivers referred to as “unconscionable”

A Tesla car is viewed from the side inside a store. A Tesla logo is on the wall behind the car.

Enlarge / Tesla Motors retailer in Tokyo, Japan, on Friday, Aug. 18, 2023. (credit score: Getty Photos | Bloomberg)

4 Tesla drivers who sued the corporate over its allegedly misleading “self-driving” claims should go to arbitration as an alternative of pursuing a category motion, a decide dominated.

The criticism sought class-action standing on behalf of “customers who bought or leased a brand new Tesla car with Tesla’s ADAS [Advanced Driver Assistance Systems] expertise however by no means obtained the self-driving automotive that Tesla promised them.” Self-driving claims made by Tesla and CEO Elon Musk “have confirmed false time and time once more,” the lawsuit stated.

Whereas the plaintiffs agreed to phrases together with an arbitration clause once they bought automobiles, they argued that “Tesla’s arbitration settlement is unconscionable, and thus [un]enforceable.” They stated the arbitration settlement “isn’t referenced on the Order web page” and “is buried in small font in the course of an Order Settlement, which is simply accessible via an not easily seen hyperlink.”

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