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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Environment
Podcast: Apple CarPlay in Tesla cars, VW on Superchargers, Toyota electric pickup, and more
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Apple CarPlay possibly coming to Tesla cars, VW getting access to Superchargers, a Toyota electric pickup, and more.
The show is live every Friday at 4 p.m. ET on Electrek’s YouTube channel.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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US EV sales declined in October following the expiration of the $7,500 federal tax credit on September 30, and the average transaction price (ATP) edged up, according to initial estimates from Kelley Blue Book, a Cox Automotive brand. However, there are still deals to be had.
Kelley Blue Book’s initial estimates show that US EV sales fell to 74,835 in October, down 48.9% from September, which was a record month, and 30.3% year-over-year.
Prices also ticked up. The average transaction price (ATP) for a new EV climbed 1.6% month-over-month to $59,125, which is 2.3% higher than a year ago.
Tesla didn’t escape the downturn, but it held up better than the overall EV market. The company’s ATP fell 1.1% from September to $53,526, and its prices are 5.5% lower than they were in October 2024. Sales of the Model 3 and Model Y both declined month-over-month, and overall Tesla sales decreased by 35.3% from September and 23.6% year-over-year, which are smaller declines compared to the broader EV segment.
Cox Automotive senior analyst Stephanie Valdez Streaty said the shift wasn’t surprising:
We expected this shift in the electric vehicle market. With the IRA-backed sales incentives gone, lower-cost EV volume was hit hard, pushing the mix toward more luxury and driving October’s EV ATP to a 2025 high of $59,125 – now $9,359 above the industry average. Affordability has always been the core challenge with EV sales, and this reset only underscores how critical it is to bring more attainable EV options to market.
Electrek’s Take
September was a record-breaking month for both EV deals and sales. Dealers were offering all sorts of sweet incentives to stack with the federal tax credit to move cars off the lot. October’s sales drop was entirely anticipated, like a pounding headache after a big blowout party.
We didn’t know what the post-federal tax credit EV market would look like. As Valdez Streaty rightly states, EVs do have a higher ATP than the industry average. But it turns out that, so far, it’s not all doom and gloom, and the federal tax credit isn’t the only incentive in town.
Every month, I compile great EV lease deals, and for the last few months, some EVs’ monthly lease payments have been cheaper than before the federal tax credit expired. Many states are still offering rebates on EV purchases, and dealers still have really good deals. While cheaper models would definitely be welcome, there are good deals available right now.
And let’s not forget the fact that EVs are much cheaper to drive than gas cars, with or without that tax credit.
Read more: From $189 a month: 5 of the best EV lease deals in November [Updated]
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The Oshkosh-built Striker Volterra Electric Aircraft Rescue and Fire Fighter (ARFF) packs advanced battery technology to deliver ultra-fast emergency response performance no matter how long it needs to be in action — and Dallas Fort Worth International Airport just put six of the awesome 6×6 machines to work!
Oshkosh has been manufacturing ARFF vehicles since it first launched the MB-5 for use by the US Navy back in 1968, and they’ve been pushing the envelope of disaster response performance ever since. The company’s latest ARFF, the Striker Volterra Electric shown here, features a slanted body with front bumper designed for maneuvering through the ditches and rough terrain they might encounter on a damaged runway. It’s also big — but it’s big for a purpose. Because ARFF vehicles don’t have to navigate the confines of city streets, they can be built bigger, carry more water, more rescue equipment, and more personnel than conventional fire trucks.
As the newest members of the DFW Fire-Rescue fleet, these Striker Volterra Electric ARFF vehicles represent a significant step in DFW’s broader plan to replace its legacy fleet with a modern, electrified response system, while also making DFW the largest Striker Volterra Electric ARFF fleet operator in the US.
“Enhancing performance by reducing response times is the key driver of transitioning to these new vehicles,” said Daniel White, DFW Fire-Rescue Chief. “The Striker Volterra vehicles are faster and more agile than our current fleet. Because they are also safe for our firefighters and conscious for the environment, this investment represents a rare win-win-win, delivering operational benefits while ensuring the safety of our responders and the community we serve.”
The Striker Volterra Electric 6×6 ARFF uses a proprietary Oshkosh electric powertrain and an electro-mechanical infinitely variable transmission (read: CVT) paired to an integrated diesel generator. The setup enables zero-emission electric operation during normal station entry, standby, and low-speed tasks, eliminating firefighter exposure to their ARFF’s diesel exhaust 99% of the time. For sustained high-power demands during active fire suppression, the system seamlessly draws from both the battery and generator, ensuring uninterrupted pumping power and performance without operator intervention.
“Our commitment goes far beyond delivering a vehicle,” said Travis Ownby, sales specialist with Siddons-Martin Emergency Group. “It’s about helping departments like DFW Fire-Rescue lead the way in operational excellence and sustainability. We’re proud to support their mission with the Striker Volterra Electric ARFF vehicles.”
The addition of the Striker Volterra Electric ARFF vehicles also supports DFW’s transition to fluorine-free firefighting foam in line with FAA guidance and the industry’s move away from PFAS-based agents for a more environmentally responsible response capability across the airport.
Electrek’s Take
With the relatively short distances driven and extreme loads involved, airports present a nearly ideal use case for battery-electric vehicles in general, and their immediate off-the-line torque, improved efficiency, and ability to operate much more quietly than diesels (facilitating emergency crews’ communications) could make all the difference in an emergency situation where lives are quite literally on the line.
Plus, as demand for on-road fossil fuels drops, airports and airlines (historically responsible for about 4% Earth’s global warming) are becoming a bigger and bigger slice of a rapidly shrinking pie when it comes to fossil fuel emissions. Or, as OshKosk put it, “As airports continue to prioritize sustainability and operational efficiency, the Striker Volterra electric ARFF stands out as a forward-thinking solution that meets today’s demands while preparing for tomorrow’s challenges.”
It’s a bit pitchy, but I couldn’t agree more.
SOURCE | IMAGES: Oshkosh.
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