Photo: Tesla | Edited
European Union legislation is still not fully understood by Tesla, which leads to costly mistakes. Until mid-April, the EV maker incorrectly instructed its customers in Germany about their right to withdraw from the sale contract. Consequently, the owners can return their EVs and get the money back even after 12 months.
Tesla is in a pickle in Germany after breaking the consumer protection legislation. European Union mandates that any product acquired online, cars included, can be returned, no question asked, within 14 days from purchase. Still, if the seller doesn't fully comply with the legislation and doesn't inform its customers of their rights, the right to return the product extends by 12 months. This could be a disaster for car companies that sell cars online, as they can depreciate significantly after one year.
Yet, Tesla is now forced to accept the return of its vehicles sold in Germany until April 17, even 12 months after the purchase. Tesla's mistake was that it didn't supply a phone number on the cancelation right notice that customers could call in case they wanted to return the cars. This breaks the stringent consumer protection legislation, which offers a 14-day money-back guarantee policy for goods bought online. As a consequence, the right to return for affected customers gets extended by 12 months, so it is now 12 months and 14 days in the case of Tesla.
According to law firm drboese.de, those who choose to ask Tesla for their money back and return the cars can do so without paying any compensation for using the vehicles. In certain circumstances, they can even keep the environmental bonus they may have received for buying the car. This is an excellent opportunity for those unsatisfied with their Tesla who don't want to sell it on the used market because of the massive drop in used prices.
Because of this, Tesla faces a massive problem, as there are potentially thousands of cars sold before April 17, when the mistake was corrected. Many Tesla EVs were sold before the EV maker crashed the prices, and their resale value plummeted. By revoking their purchase contract and returning the cars, owners can get a sweeter deal and keep the difference. This is true for all the countries in the European Union, not just Germany.
People shared in forums and social media that Tesla tried to deny consumers the right to revoke the sales contract in the 14-day window the European legislation allows. The American carmaker even states on its website that the order deposits are non-refundable. However, this, too, is illegal in the European Union countries. Consumer protection legislation in Europe is very powerful, and companies usually comply after a complaint is filed with the local consumer protection agency. This works for private citizens only, as companies must still seek justice in court.
Yet, Tesla is now forced to accept the return of its vehicles sold in Germany until April 17, even 12 months after the purchase. Tesla's mistake was that it didn't supply a phone number on the cancelation right notice that customers could call in case they wanted to return the cars. This breaks the stringent consumer protection legislation, which offers a 14-day money-back guarantee policy for goods bought online. As a consequence, the right to return for affected customers gets extended by 12 months, so it is now 12 months and 14 days in the case of Tesla.
According to law firm drboese.de, those who choose to ask Tesla for their money back and return the cars can do so without paying any compensation for using the vehicles. In certain circumstances, they can even keep the environmental bonus they may have received for buying the car. This is an excellent opportunity for those unsatisfied with their Tesla who don't want to sell it on the used market because of the massive drop in used prices.
Because of this, Tesla faces a massive problem, as there are potentially thousands of cars sold before April 17, when the mistake was corrected. Many Tesla EVs were sold before the EV maker crashed the prices, and their resale value plummeted. By revoking their purchase contract and returning the cars, owners can get a sweeter deal and keep the difference. This is true for all the countries in the European Union, not just Germany.
People shared in forums and social media that Tesla tried to deny consumers the right to revoke the sales contract in the 14-day window the European legislation allows. The American carmaker even states on its website that the order deposits are non-refundable. However, this, too, is illegal in the European Union countries. Consumer protection legislation in Europe is very powerful, and companies usually comply after a complaint is filed with the local consumer protection agency. This works for private citizens only, as companies must still seek justice in court.
Until recently, Tesla's cancellation right notice reportedly lacked a phone number, resulting in a full year longer period to use this right instead of just 14 days. Private buyers have a good chance to return their car for a full refund. Interesting, given the price reductions…
— @[email protected] (@dm_ms) April 29, 2023
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