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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Toyota’s smallest electric vehicle might actually hit the road. Thanks to new funding from the UK government, Toyota is one step closer to turning this pint-sized EV with a solar roof into a reality.
The Toyota FT-Me is a micro EV with a solar roof
It may be only 2.5 meters (98″) long, but Toyota believes the tiny electric car could be an affordable way to zip around the city.
The FT-Me is “a ground breaking concept” that blends premium design with affordability, Toyota said after unveiling it in March.
After securing a £15 million ($20,000) investment from the UK government’s DRIVE35 program, Toyota is moving closer to actually launching the pint-sized EV.
The Advanced Propulsion Centre UK, which manages the funding, announced that the £30.3 million ($40,500) project includes a £15 million grant from the Department for Business and Trade. Toyota is expected to fund the other roughly £15 million.
Toyota is working with several partners, including urban delivery specialist ELM Mobility and the University of Derby, to develop a new lightweight battery electric vehicle (BEV) in the L6e category.
Meanwhile, Savcor will design and develop the solar roof, which Toyota claims can extend a vehicle’s range by 20%, or about 20 to 30 km per day.
The pint-sized EV will be manufactured at Toyota Manufacturing UK’s Burnaston site, where it currently builds the Corolla.
Although it’s about the size of a golf cart, Toyota promises the micro EV fits two passengers comfortably. The company also claims the FT-Me’s propulsion system uses 3X less energy per km than current high-capacity electric vehicles.
Inspired by a jet helmet, Toyota said the vehicle’s compact design makes it perfect for getting around the city. It only takes up about half a parking spot.
Toyota’s pint-sized EV could arrive as a potential rival to the Citroen Ami. The Ami starts at £7,695 ($10,000) OTR, offering a WLTP range of up to 46 miles.
Would you buy Toyota’s micro EV for about $10,000? It could be a fun (and efficient) way to zip around town. It’s basically a futuristic electric golf cart with a solar roof. Unfortunately, it likely will never make it to the US with America’s growing love for big trucks and SUVs.
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For years, Norway has been the poster child for electric vehicle adoption, a perfect example of how a combination of ambitious goals and robust incentives can transform a nation’s entire automotive industry.
Now, with the country on the cusp of achieving its goal of 100% all-electric new car sales by 2025, the Norwegian government is signaling a new phase in its EV strategy, proposing changes to its incentive program that include the introduction of taxes on electric vehicles.
We have often used Norway’s success in electrifying its vehicle fleet as an example of how quickly the electric transition can impact the automotive market under the right conditions.
They made it happen through a comprehensive package of incentives, including exemptions from purchase taxes and VAT, free access to toll roads and bus lanes, on top of properly taxing internal combustion engine vehicles.
This resulted in EVs being the preferred choice for a vast majority of new car buyers. In 2024, a staggering 88.9% of new cars sold in Norway were all-electric, a figure that has continued to climb in 2025.
Gasoline and diesel cars are now obsolete in the Norwegian new car market, with a few hundred new cars per month, while EVs represent roughly 95-97%.
Finance Minister Jens Stoltenberg has announced mission accomplished (via Reuters):
“We have had a goal that all new passenger cars should be electric by 2025, and … we can say that the goal has been achieved.”
With the finish line in sight, the Norwegian government is now fine-tuning its approach.
The current incentive program maintains the crucial VAT exemption for EVs, but only up to a purchase price of 500,000 Norwegian kroner (approximately $49,000 USD). This move is designed to target more expensive, luxury EVs, ensuring that the incentive benefits a broader range of consumers.
However, the latest budget proposal aims to reduce the EV tax exemption to vehicles costing 300,000 Norwegian kroner (~30,000 USD).
This would apply for 2026, and then the tax exemption would completely end in 2027.
Additionally, the government plans to increase taxes on new gasoline and diesel cars, further widening the cost gap between polluting and zero-emission vehicles.
However, the proposal still needs to be adopted by Norway’s government, and there is some opposition.
EV associations are advocating for a more extended phase-out period to ensure that the adoption rate doesn’t decline.
Electrek’s Take
For EV enthusiasts such as myself, Norway’s journey has been a source of inspiration and a powerful argument against the claims of EV detractors. The country has proven that with the right policies, a rapid and comprehensive transition to electric mobility is not just a distant dream but an achievable reality.
That said, I do understand that Norway has a lot going for it. It is wealthy. And therefore, it made the transition easier than in most other markets.
Regarding the policy changes, I wouldn’t interpret them as a sign of retreat from the country’s electrification goals. Instead, they represent a maturation of Norway’s EV policy.
The proposed changes to Norway’s incentive program are a logical next step in this evolution. As the EV market matures, it’s natural for governments to reassess and adjust their policies. The key is to do so in a way that doesn’t derail the progress that has been made.
However, I do agree with the local EV advocates that it would make sense to extend the phase-out to ensure the market maintains its current near-100% EV rate for a few years.
The rest of the world has much to learn from Norway’s experience. The country has provided a blueprint for how to kickstart an EV revolution, and now it is showing us how to manage the transition to a fully electric future.
The message from Norway is clear: the age of the internal combustion engine is over. The future of transportation is electric, and it’s happening now.
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Fully autonomous technology developer Waymo continues to expand the reach of its test fleet as well as bona fide customer rides without a driver present. This morning, Waymo shared plans to expand across the pond to London, with public robotaxi rides expected sooner than you might think.
2025 has already been a notable year for autonomous rideshare developer Waymo, as it continues to expand across the United States. This year alone, the Alphabet, Inc. subsidiary began offering customer rides in Austin, Texas, in addition to expansion plans for other cities such as Dallas and Nashville.
In late 2024, Waymo also announced plans to begin testing its robotaxis in Tokyo, Japan, marking the company’s first international expansion. Today, Waymo shared plans for global market growth in the opposite direction, laying the groundwork for robotaxi operations in London as early as next year.
Waymo to offer public robotaxi rides in London in 2026
According to a release from Waymo this morning, the company has begun plans to expand its driverless robotaxi operations to London, laying the initial groundwork for certifications to start commercial operations by 2026. The company said it will be working with existing fleet partner Moove, which will assist with London operations. Per Waymo co-CEO Tekedra Mawakana:
We’re thrilled to bring the reliability, safety and magic of Waymo to Londoners. Waymo is making roads safer and transportation more accessible where we operate. We’ve demonstrated how to responsibly scale fully autonomous ride-hailing, and we can’t wait to expand the benefits of our technology to the United Kingdom.
Over the coming months, Waymo plans to test its technology on London roads, seeking permission from local leaders. Once that happens, Waymo will be able to begin offering the public robotaxi services using all-electric I-Pace vehicles from UK automaker Jaguar Land Rover. When available, Londoners will be able to hail a ride via the Waymo app.
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