Tesla Korea ordered to revise unfair clauses

(Yonhap) — South Korea’s antitrust regulator said Tuesday it has ordered the local unit of Tesla Motors Inc. to revise unfair contract terms.

The order came after some customers filed a complaint with the Korea Fair Trade Commission, alleging that the unfair terms violated a law that protects consumers’ rights.

One of the unfair terms was that Tesla Korea would return 100,000 won (US$84) of commission fees in compensation if a vehicle is damaged during a delivery.

Tesla Korea abolished such unfair terms on March 27 and revised contract terms to let the company pay compensation in case of damage to vehicles in transit, the commission said.

Tesla Korea said it had no immediate comments on the issue.

Tesla sold 7,079 vehicles in South Korea in the first half of the year, a sharp hike from 422 units in the same period of last year, according to data from Tesla.

In June, the U.S. electric carmaker said it delivered a record high number of 2,827 units on a monthly basis, sharply up from 121 units a year ago, helped by higher demand for the Model 3.

Among foreign carmakers, Tesla ranked fourth in terms of sales last month, following Mercedes-Benz with 7,672 units, BMW’s 4,069 and Audi’s 3,401, according to the Korea Automobile Importers and Distributors Association.


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