Tesla Faces Lawsuit for ‘Phantom Braking’, U.S. Judge Rules

Tesla is facing some legal heat over a “phantom braking” issue, as a U.S. judge has given the green light for a consumer lawsuit against the company. This lawsuit alleges that Tesla has been hiding a defect in its forward collision warning system that leads to false alerts, sudden braking, and even higher insurance premiums for drivers. While some parts of the lawsuit were thrown out, consumers have the opportunity to revise their complaint specifically regarding insurance premium problems.

The ruling, issued last Friday by U.S. District Judge Georgia Alexakis in Chicago, narrowed down the focus of the case but allowed the broader class-action suit to move forward on the basis that Tesla did not disclose the “phantom braking” safety concern to potential purchasers. The judge did dismiss certain aspects of the lawsuit, such as claims that Tesla’s insurance division overcharged customers due to the faulty collision monitoring system.

According to the consumers’ complaint filed in 2023, Tesla’s forward collision monitoring system tends to generate false warnings of imminent crashes, even when there is no actual risk. As a result, drivers are reportedly seeing their insurance premiums go up based on inaccurate collision alerts from their vehicles. The lawsuit alleges that Tesla knew about this issue as far back as 2015 but chose not to inform customers.

Tesla, on the other hand, denies these claims, stating that they were unaware of any phantom braking problems before one of the plaintiffs bought a vehicle in early 2021. The company argues that the plaintiffs have not provided concrete evidence of any communication with buyers that concealed information about the defect. The judge, however, acknowledged that the lawsuit successfully links Tesla’s failure to disclose safety details on its website with buyers’ trust in that information for their purchase decisions.

In light of the judge’s ruling, the plaintiffs have the opportunity to amend their complaint to pursue their claims related to insurance premiums.

This lawsuit against Tesla highlights a crucial issue in the development of autonomous vehicles: their unpredictability. Phantom braking, where cars suddenly slow down for no apparent reason, is not just an annoyance—it poses a serious safety risk. While autonomous technology promises accuracy and dependability, incidents like these expose its limitations. When drivers cannot rely on their car’s behavior, road safety is compromised. This legal action serves as a wake-up call that automakers may be prioritizing innovation over public safety. Until these systems are flawless, autonomous vehicles remain a risky experiment on our roads.

To stay updated on this case, keep an eye out for Joshua Santiago et al v. Tesla in the U.S. District Court, Northern District of Illinois, No. 1:23-cv-02891.