Tesla Gets Carried Away Hyping Crash Test Results, Has Hand Slapped By Feds
forbes.com
forbes.com
NHTSA does not publish a star rating above 5, however safety levels better than 5 stars are captured in the overall Vehicle Safety Score (VSS) provided to manufacturers, where the Model S achieved a new combined record of 5.4 stars.
You can't blame Tesla for taking that number and running with it, given that (1) modeling car safety from two seaters to SUVs on a range from 1 to 5 stars is ridiculous and (2) the star systems suffer from the same problems as contemporary game and movie reviews: 99% of all evaluated products land between 3 and 5 stars, where 3 then becomes the new horrible, compressing the already low entropy of a star value further.
Maybe they need to be more aggressive with their adjustment so that the minimum expected really is 1 star.
sum(p(accident type) * p(estimated of surviving corresponding safety test))
At best you're computing odds according to the null hypothesis (probably not what you indented). At worst it's as meaningless as adding meters to seconds.
That's not a bad thing. We wanted safer cars. We started measuring safety, and publishing the measurements. As a result, safety improved. Working As Intended.
3 is the new horrible simply because that is the lowest that a commercially viable car can go--Chevy and Subaru have released sub-3 cars in the past and suffered for it with poor sales. They and others learned that consumers wouldn't buy cars that were rated below-average safety-wise and have vastly increased R&D spending on safety features. That's a good thing for consumers.
It better not be a real average if everyone is always above average!
You mean to say poorly rated, not below average, since it's not an average.
For a truly excellent product, the distribution should approximate a power law graph:
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XX
X
X
If you see something like these: XXXXXXX
X
X
X
X
X
X
X
X
XXXXX
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XXXXXX
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X
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Then ask yourself if the sample size makes this plausible, in which case the star rating isn't worth much, because there isn't enough data. Ask yourself if it's possible that someone has been gaming the system for or against.The uppercase gamma-shaped graph is either someone gaming the system or it's a power law graph hidden by aliasing. (In which case, the thing is of godlike quality.)
We should do away with star ratings, and instead just present an aggregate "rating." Genuine customer ratings are valuable, but are almost immediately gamed by cheaters. If I were Apple or Amazon, I would build stealth captchas and "honeypot" traps for ratings manipulation, and figure those into the rating. Be sure to separate detection from consequences by a random time interval of at least a few days. This makes the "development cost" for the cheaters much higher.
The problem with star ratings is obviously what PG refers to as "schlepping". Is anyone tackling this already?
EDIT: I would surmise that AirBNB is somewhat tackling this problem already.
The Top Gear review was essentially accurate, at least IMHO.
Tesla argued in court that it was unfair to mention the car's disappointing range on the test track because most people won't be driving on a test track. A strange argument, especially for a sports car. Note that they did not argue that the range number cited was wrong -- just that it might confuse potential buyers.
The judge ruled that: "no reasonable person watching the programme could understand that the performance on the track is capable of direct comparison with the performance, including the range, on the road"
Actually he claimed to have the heater keeping the cabin at near-freezing temperatures, and the cabin temperature graph captured from the car strongly disputed that. Going over-the-top at the guy was all they could do after he had made so many different false claims. He was probably right with some of the claims, and the proof of him circling around in the parking lot wasn't as open-shut as initially presented, but when you are hit by that many misrepresentations at once you have to fight back fast.
True, but the agency gives legal cover. When there is a question in court as to whether the safety systems performed "as advertised", the NHTSA is free to say that Tesla didn't follow the advertising guidelines, and therefore cannot comment on the performance of the safety system.
Drug companies can also advertise drugs outside the FDA guidelines, and would win a court challenge on 1st Amendment grounds. None do it because it would expose them to unbounded liability.
No, no, no. This is utterly and confirmably false. It is illegal under the Federal Food, Drug and Cosmetic Act to advertise a prescription drug for a use that is not FDA approved, and it is within the FDA's mandate to recommend investigation to the Department of Justice in such circumstances. The FTC is authorized to oversee advertising for over-the-counter drugs under the Wheeler-Lea Act. As a recent example, Pfizer agreed to settle with the DoJ earlier this summer for half a billion to end an investigation brought under these very circumstances[1].
[1] http://www.newstatesman.com/business/business/2013/07/pfizer...
http://www.reedsmith.com/files/uploads/DrugDeviceLawBlog/Car...
" Caronia argues that he was convicted for his speech -- for promoting an FDA-approved drug for off-label use -- in violation of his right of free speech under the First Amendment. We agree. Accordingly, -3- we vacate the judgment of conviction and remand the case to the district court. "
It is uncertain whether marketing off label is protected by the 1st amendment. The courts don't all agree.
The one case you cite is very fresh precedent in a single Circuit, and it's highly controversial. No other Federal Circuit has applied First Amendment standards to FDA misbranding regulations before. Even within the Second Circuit (three states), is it still illegal under law to misbrand a drug in marketing materials. The decision in Cariona hinges on the question of whether "misbranding" and "promotion of off-label use" are different narrowly defined legal scenarios. The Second Circuit was concerned that, in the latter scenario, doctors may be legally deterred from promoting off-label use, which is a common practice in medicine and research. You should not take away from this case that drug marketing is now a First Amendment free-for-all. Yes, I am awfully certain.
Until then, however, off-label drug marketing is not something companies get away with without a substantial legal battle (often not worth it), and the FDA has so far collected billions of dollars in settlements and fines through successful off-label drug marketing suits.
We never advertised off-label. Whether it's legal or not, I do recall you'd get slapped by the FDA for lack of controls. We had many cases where doctors would use a product off-label and it'd come back to us in the form of a complaint or defect (product comes back as defective, we investigate and find out the doctor was using the product for an off-label procedure it wasn't designed for and would fail, hence the 'defect'). At which point we'd have to proactively train doctors to not do this and other corrective action measures would have to be put in place. If upon investigating we find this would be a good use of the product, we'd have to go through another round of FDA fun (sometimes clinicals and how much testing depended on some factors, definitely rounds of internal testing and implement new QA tests and procedures to ensure the product can work for the new use and have proper fault tolerances as well as new labeling and training, etc).
Now, do companies try to skirt around this? Sure. Part of my job at the time was to make sure we didn't. FDA Warning letters are no joke in this industry, it can literally put you out of business.
The most analogous case that comes to mind, is the recent California small claims case against Honda.
Facts: According to the EPA (who independently tests vehicles fuel efficiency) the Prius gets an average of 51 MPG. The Plaintiff claimed she only got an average of approximately 30 MPG. The Plaintiff won the lawsuit against Honda for fraudulent misrepresentation winning $10K the small claims limit in the jurisdiction. However, one of the most interesting arguments (and legitimate) was that while Honda does advertise the 51 MPG, that Honda could not be fraudulently misrepresenting the MPG, because Honda had no control over the testing or findings handled by the EPA, and going further Honda does not have a right (1st amendment) to contradict the "EPA sticker". Ergo according to the argument Honda should not be liable, rather the EPA - nevertheless the Court found Honda liable for fraudulent misrepresentation.
Assuming this law is on point and controlling, for example, if the Tesla were to under perform in a real crash and Tesla was sued, Tesla may be liable despite having no control over the NHTSA test or findings. Going further, if the dicta from the Honda case is also on point, if Tesla's internal crash tests contradict NHTSA's ratings, Tesla would not have a 1st Amendment right to contradict the NHTSA findings publicly.
Note: That SCOTUS makes a distinction between "commercial speech" and other forms of speech, and the government has a lot more power to regulate commercial speech than say political speech.
It's good for Tesla shareholders that Forbes decided to run with this story, though. Free advertising. There is no way anyone will ever perceive a fight about whether the car should have 5 or 5.4 stars as negative.
I'd argue that it might: NHTSA wants to encourage automakers to build safer cars. One way to do that is to provide them with detailed information on the results ("scores") of its tests, so that automakers can benchmark their engineering against each other and tune individual safety features as needed. Another way is to aggregate those results for each model and publish a consumer-friendly figure that automakers are motivated to be able to advertise as a "stamp of approval".
What they don't want is automakers getting into NHTSA test "hot-rodding" games, focusing their efforts on topping the individual tests by some small relative figure in order to claim things like "safest car ever". In an environment like that, NHTSA has to either stop publishing detailed results, or keep the mechanics of their testing secret in an attempt to prevent "benchmark gaming" of the kind we see all the time in technology. That sounds like an NHTSA that is competing with automakers rather than working with them, and I suspect that is how consumers could be ultimately hurt.
Entities have rights over how they are used in promotions, i.e., the right of publicity / personality rights http://en.wikipedia.org/wiki/Personality_rights
For example, Consumer Reports No Commercial Use Policy - http://www.consumerreports.org/cro/about-us/no-commercial-us...
And clearly, the goal here is to stop every manufacturer from just coming up with their own rules for interpreting the score that give them a different rating from the one that the NHTSA gives. That's definitely worthwhile.
I doubt that anyone at Tesla is feeling the least bit chastised. Musk is certainly not the type of person who is afraid to generate a little controversy.
> NHTSA does not rate vehicles beyond 5 stars and does not rank or order vehicles within the star rating categories.
So the following statement is flat-out untrue:
> SETS NEW NHTSA VEHICLE SAFETY SCORE RECORD
If NHTSA does not rate vehicles beyond 5 stars, the maximum safety score is 5 and thus 5.4 is irrelevant
I think if the headline was "sets new vehicle safety score record", dropping the NHTSA acronym, then it would be fine.
If they really did want to make a distinction, they'd introduce a new scoring metric that does allow for those differences
You could also just go ask the professor at their office for your grade, but using their site is easier.
It might not move fast, but you need military-grade hardware or construction equipment to make a dent.
Tesla is a startup with cool technology. They're taking on a market where startups never succeed and are navigating significant challenges regarding new technology, consumer bias, competitors, regulatory issues, business model, press relations, and more. Some of us find it fascinating and enlightening to watch them take this journey.
Edit: Reworded.