Public Citizen files questionable complaint against Toyota

Public Citizen is a consumer rights advocacy group that works to insure corporate accountability. On December 13th, the non-profit filed a formal complaint with the Federal Trade Commission (FTC) accusing Toyota of deceptive marketing practices. The complaint alleges that the automaker is misleading consumers by marketing its hybrids and plug-in hybrids as “EVs” and using words like “electrified” to describe its extensive lineup of green vehicles. Public Citizen argues that most consumers have come to associate this kind of terminology with fully electric vehicles, so applying the same terminology to other green powertrains constitutes deceptive advertising.

The FTC is unlikely to agree that Toyota’s marketing tactics are overly deceitful, and there is a strong argument that Public Citizen is the group trying to mislead the public. The ambitious watchdog cites a subtle change in the labeling of the Toyota Prius as strong evidence of Toyota’s guilt. Toyota’s new, state-of-the-art Prius has a badge that says “HEV”, while previous versions of the hatchback had a badge that said “HYBRID”. Public Citizen is contending that the presence of “EV” within the updated “HEV” badge deceptively implies that the latest Prius has been redesigned to be more like a fully electric vehicle. The strained argument is unlikely to persuade the FTC, because the entire auto industry recognizes “HEV” as the standard abbreviation for a hybrid electric vehicle, and there is no way to argue that a Prius hybrid is not an HEV.

Public Citizen goes on to complain about a promotional graphic that presents the slogan “Toyota is Electrified Diversified” above “Hybrid EV,” “Plug-in Hybrid EV,” “Fuel Cell EV,” and “Battery EV,” accusing Toyota of marketing all its green vehicles as EVs. But here again, Toyota is using standard, accurate nomenclature that is not ordinarily considered deceptive.“PHEV” is the conventional abbreviation for “plug-in hybrid electric vehicle,” “FCEV” stands for “fuel cell electric vehicle”, and “BEV” stands for “battery electric vehicle.”The Environmental Protection Agency and the National Highway Traffic Safety Administration recognize these exact abbreviations, and in each case the letters “E” and “V” are known to stand for “electric” and “vehicle.”

The complaint asks the FTC to rule that the marketing of gasoline-powered vehicles as “EVs,” “electric,” or “electrified” is deceptive and prohibited under Section 5 of the FTC Act, but the agency would be outlawing well-established, useful terminology that evolved on its own and is reasonably accurate. Partial electrification that enables regenerative braking is the fundamental attribute that distinguishes efficient, gas-powered hybrids and plug-in hybrids from traditional internal combustion vehicles. Technically speaking, HEVs and PHEVs are indeed electric vehicles, and the initial letters in their unique abbreviations allow consumers to distinguish them from fully electric BEVs. The FTC is also being asked to investigate and act against Toyota for typical marketing practices used extensively by other automakers. Using the word “electrified” to describe HEVs and PHEVs is especially common, and not at all surprising.

Toyota is rightfully proud of its diverse, highly efficient U.S. fleet, and it markets its electrified vehicles candidly using conventional terminology that distinguishes its HEVs, PHEVs, and FCEVs from its fully electric BEVs. When subjected to scrutiny by the FTC, Public Citizen’s dubious arguments will be difficult to accept.