By Cecilia Butini

A Munich court on Tuesday banned Tesla Germany from describing its driver-assistance technology as "autonomous," which it said can be misleading to consumers.

The ruling, which the German branch of U.S. auto maker Tesla Inc. can appeal, comes after a German national body tasked with controlling unlawful competition brought the case to court last October. In its ruling, the court said the wording Tesla used to describe its vehicles' performances in advertising materials doesn't reflect reality.

According to the court, Tesla used the phrase "full potential for autonomous driving" in descriptions of its vehicles on its German website. The court said this sentence leaves room for customers to believe that fully autonomous driving is possible on German roads, which isn't the case.

Tesla didn't respond to a request for comment on the case.

Write to Cecilia Butini at cecilia.butini@wsj.com