SEOUL (Reuters) – South Korea’s antitrust regulator may impose penalties on U.S.-based electric car manufacturer Tesla (NASDAQ) Inc after it found that the battery specifications were exaggerated, an official stated Wednesday.

Korea Fair Trade Commission (KFTC), had submitted a report to the maker of electric vehicles (EVs) stating that the company had exaggerated some models’ mileage, in violation of Act on Fair Labeling and Advertising.

A KFTC official told Reuters that they plan to convene a general meeting in order to assess and determine whether the automaker violated any laws and to decide on the severity of sanctions.

Tesla’s Model 3 is capable of traveling 528 km (392 miles) per single charge, according to its website. However, the KFTC states that it is possible for the range to be shorter if the temperature drops below freezing.

According to analysts, most electric cars could experience a loss in driving range when it is cold.

The KFTC also considers whether it will impose sanctions against Tesla for failing to refund deposits to customers who cancel online orders before vehicle orders were released.

According to Yonhap news agency, Tesla South Korea requires that customers pay a 100,000 won deposit ($84) to purchase Tesla cars online. However, deposits are not refunded if customers cancel their orders.

When Reuters reached Tesla for comments, he wasn’t immediately available.

($1 = 1,197.0900 won)