Public Citizen asks the Federal Trade Commission (“FTC” or “the Commission”) to investigate and take enforcement action against Toyota Motor Corporation and Toyota Motor North America (“Toyota”) for its misleading marketing of gasoline-powered vehicles as electric vehicles (“EVs”)...
Toyota is the world’s largest automaker. As the maker of the Prius hybrid vehicle, it was long considered a leader in the field of clean cars. But now the market is shifting rapidly toward electric vehicles. Toyota long ignored this technology, and today it lags far behind other automakers in a market that is growing exponentially.
In response to this market shift, Toyota has launched a marketing campaign that uses the term “electrified” to paint its existing hybrid models—which are gasoline-powered—as electric vehicles. Through its “Beyond Zero,” “Electrified Diversified,” and “To Each Their Own Electric” marketing campaigns and other advertising practices, Toyota is mendaciously relabeling a number of cars with internal combustion engines “EVs” and representing vehicles that run on fossil fuels as “electric” and “electrified.” These representations are misleading consumers about the climate and economic benefits of Toyota’s hybrid cars as compared to EVs...
Toyota has begun resorting to deception and unfair competition, the subject of this complaint. Precisely because EV sales are growing “exponentially” and Toyota barely offers any for sale, it has decided to pretend many of the cars it sells are electric vehicles. Toyota is now marketing hybrids and plug-in hybrid cars that run primarily or entirely on gasoline as “EVs.”
Consumers are primed to believe that if Toyota is offering a new Prius called an “HEV” instead of a “hybrid,” the car must employ new, more advanced, electric or EV technology. But these rebrandings do not correspond to a change in the engine or any other technology in these cars...
in one 30-second television spot titled “E-AWD Headquarters” a giant capital “E” is lifted by a crane while a voiceover declares... “Toyota is electrified, diversified, with more electrified all-wheel drive or four-wheel drive models than any other brand.”...
In fact, Toyota sells only one model of electric vehicle for which all-wheel drive is available as an option (and only one EV at all)—the bZ4X, for which it targeted sales of just 10,000 in the U.S for 2023.