Toyota accused of deceiving customers with falsified advertising
The consumer organization of Norway has accused the world-renowned motoring publication Motor of intentionally deceiving customers with its misleading and falsified advertising about the new electric car from Toyota. The publication contends that one of the main reasons for high sales of the Toyota BZ4X in Norway is that Toyota guarantees certain things about the car, which are misleading and deceiving potential buyers. The publication claims that Toyota is withholding crucial information about their electric vehicle batteries and warranties, which is harming competition and tricking customers into believing they are entitled to a 10-year warranty when they are not.
Context
Toyota recently started selling the BZ4X in Norway and surprisingly, has sold well, becoming the second best-selling car in the country after Tesla’s Model Y. However, the consumer organization of Norway is saying that Toyota’s car customers, those who have already bought their electric car so far this year, have been deceived by Toyota because Toyota claims that the electric car’s batteries come with a guarantee for 10 years or 1 million kilometers, which is not entirely accurate. Toyota uses advertising as its MO, spending a considerable amount on it, including bragging on their warranty in sports broadcasts and other commercials. However, the small print they put on their warranty states that the warranty only applies if you follow a specific and expensive warranty program at Toyota Branded workshops, which the consumer organization of Norway believes is deceiving its customers.
The Warranty
To maintain this warranty, customers are required to pay to service their car with a Toyota workshop for ten years. Unlike other car brands, Tesla, for example, does not require its customers to service their car at all to maintain their warranty ever, with Tesla or anyone else. This means it’s quite an expensive proposition having to service your car with a Toyota branded workshop in Norway, which can end up costing you around $5000 over a 10-year period. Motor reported that Toyota is among the worst car brands for electric car battery guarantees, according to an investigation by the consumer council. The small print in Toyota’s warranty program means that you are required to service your car with Toyota for ten years to maintain your warranty, which is an expensive undertaking.
Professor’s Opinion
Toward Wallen Anderson, a professor of marketing at the Norwegian School of economics, has seen Twitter’s advertising and said Toyota intentionally withheld information in the TV commercial, tricking customers into believing something other than what is true. He said that it is unfortunate for moral reasons and legally that they trick customers into believing something other than what is true and claim something that is not true. Anderson believes the quality of electric car batteries is essential for car customer purchasing decisions, and car manufacturers with good guarantees more easily win the competition for customers, but Toyota is deceiving its customers, a basic principle in the marketing act. In Anderson’s opinion, Toyota is misleading customers about their warranties, which they advertise as a 10-year guarantee, but in reality, this is not open to all customers, thereby deceiving its customers.
Toyota Responds
Toyota Norway denies any wrongdoing and believes it does not mislead or deceive its customers. The information manager of Toyota Norway, Espin Olsen, said they do not recognize themselves in this criticism and serious allegations of misleading or deceiving customers. He claims they are concerned that their marketing is compliant and correct, and the extra warranty is good. He believes it is not unusual for conditions to be set for guarantees to apply in the small print that no one knows about, which is perfectly acceptable.
Conclusion
In conclusion, the consumer organization of Norway and the motoring publication Motor seem to agree on one thing: that Toyota is deceiving its customers with falsified advertising. The warranty they advertise as a 10-year guarantee is not open to all customers, as there are strict conditions attached to it. Toyota requires its customers to service its car with a Toyota workshop for ten years, which can be quite expensive for some buyers. The issue the consumer organization of Norway raises concerning Toyota’s warranty program is harming competition in the workshop market, and they believe it is intentionally misleading customers. At this point, the Norwegian Government is currently reviewing Toyota’s advertising practices, and it may ban their advertising.