UK lawmakers have proposed the “Automated Vehicles Bill,” which grants the government the power to fine companies and provides individuals with immunity from prosecution while in self-driving vehicles.

As per the proposed bill, automakers, rather than the owners of self-driving cars, will bear legal liability for any accidents involving autonomous vehicles. Companies offering self-driving technology could face legal action if their vehicles fail to meet safety standards in severe cases.

The bill also enforces truth in marketing, allowing vehicles to be marketed as self-driving only if they meet safety requirements.

The proposed law has received support from insurers and autonomous vehicle startups, offering clarity on liability and encouraging investment in R&D within the UK's self-driving vehicle industry. It aims to establish legal frameworks and safety standards to gain public trust in autonomous vehicles.

Analyst QuickTake: Today’s news can be perceived as an encouraging measure for autonomous vehicle startups lobbying the government to develop a regulatory framework. The policy on marketing, however, may have implications for companies like Tesla, which offers safety and driving assist functions branded “full self-driving (FSD)” and “autopilot,” suggesting fully autonomous operations but are only capable of Level 2 automation (i.e., the vehicles can control speed and steering, but a safety driver must maintain full vigilance). Previously, the California state government also passed a bill to incorporate rules to prevent deceptive advertising regarding the autonomous functions of automobiles.