South Korea’s Fair Trade Commission has decided to slap a fine of some two-point-eight billion won, or two-point-two million U.S. dollars, on electric vehicle(EV) maker Tesla over misleading advertisements.

In imposing the fine on Tuesday, the watchdog said it believes the U.S. EV manufacturer exaggerated specifications, including travel distance and charging speed, in its ads without considering other variables such as weather conditions.

In the ads, Tesla claims that its electric car can run more than 528 kilometers on a single charge, but the FTC saw this as an exaggeration of the vehicle’s actual performance, noting that the distance mentioned can only be covered in room temperature conditions or in downtown areas.

Adding that the actual distance was far shorter in colder temperatures, the watchdog also took issue with the advertised claim that the EV can run for hundreds of kilometers after a 15- to 30-minute charge without specifying the type of charging facility.

The commission said Tesla further misled consumers by inflating the value of savings on fuel.

The FTC also decided to impose a separate penalty of one million won for unfair business practices with regard to a 100-thousand won fee Tesla charged customers who canceled orders as well as the company’s policy that prevents customers from canceling orders online.

Source: KBS World Radio