FTC complaint filed against Toyota over its false electrification claims
A new complaint with the FTC alleges that Toyota is engaging in false and misleading marketing of its vehicles, leading to consumer confusion over how “electrified” they really are.
Last month, we covered how Toyota’s greenwashing hasn’t really changed since its new CEO, Koji Sato, took over for Akio Toyoda.
Now, Public Citizen, the organization that we talked to for that story, has formally aired its grievances about Toyota’s tactics with the US Federal Trade Commission.
This is just an FTC complaint – the FTC has not yet opened or concluded an investigation. But the claims within the complaint are quite extensive, showing several examples of Toyota using misleading tactics to sow confusion about electric cars in the market.
The complaint lays out the argument that Toyota is far behind on EVs, that this threatens its market dominance and consumer loyalty, and that Toyota’s response has been to intentionally confuse customers about EVs and hybrids. It lays out the differences between EVs, hybrids, and plug-in hybrids, then describes several aspects of Toyota’s marketing of “electrified” vehicles that have intentionally confused those categories of vehicle.
False advertising is a tough claim to prove in the US, but it is still within the FTC’s purview to ensure that consumers are not misled. If a company makes claims that are misleading to reasonable consumers and have a material effect on the competition, the FTC can act to stop the company from making these claims.
Public Citizen alleges that Toyota’s claims are material and deceptive to reasonable consumers. It also argues that Toyota is unique in the amount of deceptive marketing engages in, and that it specifically has violated FTC’s “Green Guides,” a set of marketing guidelines intended to ensure that companies don’t market products as environmentally-friendly when they are not.
The complaint includes several specific advertisements that make Toyota seem like a leader in electric vehicles when it is not. These include:
- Images of a hybrid being shocked by a jolt of electricity, despite that conventional hybrids get all of their energy from gasoline.
- Images of a gas-powered hybrid driving next to solar panels (which can’t charge it) next to the words “carbon neutral” (which it is not).
- Using the word “range” to describe how far a hybrid can go on a tank of gas, instead of mpg as virtually all gas car advertisements do.
- A “To Each Their Own Electric” campaign, which includes several vehicles that run exclusively on gasoline.
- And the classic “self-charging hybrid” lie which got Toyota’s ads banned in Norway.
But the largest number of complaints involve the word “electrified,” which has been used as a weasel word by several manufacturers. It is often used to describe any vehicle that has an electric motor in it, but creates confusion in customers who don’t know the difference between conventional hybrids, that run fully on gasoline, and actual electric vehicles.
Toyota has used this word more than other brands – between claiming that it offers “more electrified vehicles than any other brand,” despite Toyota only having one full battery-electric vehicle; or its “electrified diversified” marketing campaign, suggesting that non-electric vehicles should somehow count as electric. While other brands do use the word in some announcements, they don’t generally craft entire marketing campaigns around it.
The complaint argues that these violations are harmful to the overall EV market, because they have created confusion among consumers and even industry sources, and that this is not a trivial violation because cars are typically the most or second most expensive thing that any person will own.
For these reasons, Public Citizen finishes out the complaint by asking the FTC to investigate Toyota’s marketing and develop specific guidance on EV marketing so that other companies cannot use the same tricks to mislead consumers about their products.
Electrek’s Take
We’ve made it clear many times, we’re not a fan of Toyota’s EV strategy. And a lot of the reason for that is their misleading marketing related to electric cars, which we’ve covered before here on Electrek.
The company has been one of the world’s biggest opponents to electrification and to better climate policy in general, on par with fossil fuel companies themselves.
And with a massive company – one of the world’s largest – actively opposing climate action and sowing doubt in an automotive market where it holds outsized influence, I think it’s easy to tell how this can be harmful to the world.
The FTC complaint itself (you can find a PDF of the complaint linked on this page) lists several examples that we hadn’t heard of, and makes Toyota seem pretty bad.
But Toyota’s inaction isn’t just harmful for the entire world, it’s also quite probably going to be harmful for the economy of Japan. Even if we ignore the terrible effects of climate change and pollution that Toyota has thrown its weight behind, its intransigence on EVs is likely to cost the Japanese economy trillions.
Toyota has a new CEO, and that new CEO joined the company on the thinking that he would be able to improve the company’s EV strategy. That hasn’t happened yet, and Toyota is up to its same old tricks – but it doesn’t have to be, and it can change. It’s about time it does so.
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GE Vernova has produced over half the turbines needed for SunZia Wind, which will be the largest wind farm in the Western Hemisphere when it comes online in 2026.
GE Vernova has manufactured enough turbines at its Pensacola, Florida, factory to supply over 1.2 gigawatts (GW) of the turbines needed for the $5 billion, 2.4 GW SunZia Wind, a project milestone. The wind farm will be sited in Lincoln, Torrance, and San Miguel counties in New Mexico.
At a ribbon-cutting event for Pensacola’s new customer experience center, GE Vernova CEO Scott Strazik noted that since 2023, the company has invested around $70 million in the Pensacola factory.
The Pensacola investments are part of the announcement GE Vernova made in January that it will invest nearly $600 million in its US factories and facilities over the next two years to help meet the surging electricity demands globally. GE Vernova says it’s expecting its investments to create more than 1,500 new US jobs.
Vic Abate, CEO of GE Vernova Wind, said, “Our dedicated employees in Pensacola are working to address increasing energy demands for the US. The workhorse turbines manufactured at this world-class factory are engineered for reliability and scalability, ensuring our customers can meet growing energy demand.”
SunZia Wind and Transmission will create US history’s largest clean energy infrastructure project.
Read more: The largest clean energy project in US history closes $11B, starts full construction
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Jeremy Allaire, Co-Founder and CEO, Circle
David A. Grogan | CNBC
Circle, the company behind the USDC stablecoin, has filed for an initial public offering and plans to list on the New York Stock Exchange.
The prospectus, filed with the SEC on Tuesday, lays the groundwork for Circle’s long-anticipated entry into the public markets.
JPMorgan Chase and Citigroup are serving as lead underwriters, and the company is reportedly aiming for a valuation of up to $5 billion. It will trade under ticker symbol CRCL.
It marks Circle’s second attempt at going public. A prior merger with a special purpose acquisition company (SPAC) collapsed in late 2022 amid regulatory challenges. Since then, Circle has made strategic moves to position itself closer to the heart of global finance, including the announcement last year that it would relocate its headquarters from Boston to One World Trade Center in New York.
Circle reported $1.68 billion in revenue and reserve income in 2024, up from $1.45 billion in 2023 and $772 million in 2022. The company reported net income last year of about $156 million., down from $268 million a year earlier.
A successful IPO would make Circle one of the most prominent pure-play crypto companies to list on a U.S. exchange. Coinbase went public through a direct listing in 2021 and has a market cap of about $44 billion.
Circle will be trying to hit the public markets at a volatile moment for tech stocks, with the Nasdaq having just wrapped up its steepest quarterly drop since 2022. The tech IPO market has been mostly dry for over three years, though there are signs of life. Online lender Klarna, digital health company Hinge Health and ticketing marketplace StubHub have all filed their prospectuses recently. Late last week, artificial intelligence infrastructure provider CoreWeave held the biggest IPO for a U.S. venture-backed tech company since 2021. But the company scaled back the offering and the stock had a disappointing first two days of trading before rebounding on Tuesday.
Circle is best known as the issuer of USD Coin (USDC), the world’s second-largest stablecoin by market capitalization.
Pegged one-to-one to the U.S. dollar and backed by cash and short-term Treasury securities, USDC has roughly $60 billion in circulation and makes up about 26% of the total market cap for stablecoins, behind Tether‘s 67% dominance. Its market cap has grown 36% this year, however, compared with Tether’s 5% growth.
The company’s push into public markets reflects a broader moment for the crypto industry, which is enjoying political favor under a more crypto-friendly U.S. administration. The stablecoin sector specifically has been ramping up as the industry gains confidence that the crypto market will get its first piece of U.S. legislation passed and implemented this year, focusing on stablecoins. President Donald Trump has said he hopes lawmakers will send stablecoin legislation to his desk before Congress’s August recess.
Stablecoins’ growth could have investment implications for crypto exchanges like Robinhood and Coinbase as they become a bigger part of crypto trading and cross-border transfers. Coinbase also has an agreement with Circle to share 50% of the revenue of its USDC stablecoin, and Coinbase CEO Brian Armstrong said on the company’s most recent earnings call that it has a “stretch goal to make USDC the number 1 stablecoin.”
The stablecoin market has grown about 11% so far this year and about 47% in the past year, and has become a “systemically important” part of the crypto market, according to Bernstein. Historically, digital assets in this sector have been used for trading and as collateral in decentralized finance (DeFi), and crypto investors watch them closely for evidence of demand, liquidity and activity in the market.
After its meteoric rise in the global auto industry last year, the Chinese EV giant is off to a hot start in 2025. BYD sold over one million EVs and plug-in hybrids in the first three months of the year. Even more impressive, BYD’s overseas sales doubled to start the year as it expands into new markets. With new EVs arriving, some predict BYD could see even more growth this year.
BYD’s overseas sales are surging as new EVs arrive
BYD sold 377,420 new energy vehicles (NEVs) last month alone. Like most Chinese automakers, BYD reports NEV sales, including plug-in hybrids (PHEVs) and fully electric vehicles (EVs).
Of the 371,419 passenger vehicles BYD sold in March, 166,109 were EVs, and the other 205,310 were PHEVs. Combined, BYD’s sales were up 23% compared to last year.
BYD’s Dynasty and Ocean series accounted for 350,615, while its luxury Denza brand sold 12,620, Fang Cheng Bao had 8,051, and its ultra-luxury Yangwang brand sold another 133 models.
Through the first three months of 2025, BYD sold over one million (1,000,804) NEVs. That’s up 60% from the 626,263 sold in Q1 2024. Fully electric models accounted for 416,388 while PHEV sales reached 569,710, an increase of 39% and 76% from last year, respectively.
BYD’s overseas sales reached a new record last month, with 72,723 vehicles sold in markets outside of China. Through March, BYD has sold over 206,000 NEVs overseas, more than double (+110%) the number it sold last year.
BYD has made a name for itself with ultra-low-cost EVs like the Seagull, which starts at under $10,000 in China. In overseas markets, like Mexico, it’s sold as the Dolphin Mini and starts at around 358,800 pesos, or around $20,000.
The world’s largest EV maker is quickly expanding into new segments with pickup trucks, smart SUVs, luxury models, and electric supercars rolling out.
Last week, BYD launched the Yangwang U7, its first ultra-luxury electric sedan. With four electric motors, the U7 packs 1,287 horsepower, good for a 0 to 62 mph (0 to 100 km/h) sprint in just 2.9 seconds. It also has up to 720 km (447 miles) CLTC driving range.
The Porsche Panamera-size EV is loaded with BYD’s top-tier “God’s Eye” A advanced driving assistance system, DiPilot 600, and a host of other premium features. All of that, and it starts at just just 628,000 yuan ($87,700).
In Europe, BYD is aggressively expanding with new vehicles tailored to buyers in the region, like the Sealion 7 midsize SUV and Atto 2. It’s also expected to launch the low-cost Seagull EV in Europe later this year or early 2026 as the “Dolphin Surf.”
According to S&P Global Mobility, BYD’s sales are expected to double in Europe this year to around 186,000. By 2029, that number could reach 400,000 or more.
BYD outsold Honda and Nissan in 2024. As it aims to sell 5.5 million vehicles this year, BYD could be on track to surpass Ford in global sales this year. BYD also aims to sell over 800,000 EVs overseas in 2025, double the number it sold last year.
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