FTC States Where It Stands On Direct-To-Consumer Sales

The past couple years have seen Tesla and dealer groups fighting over Tesla's decision to sell vehicles direct to consumers. Certain states have passed laws which exclude Tesla from doing this, while in other states, Tesla has triumphed. Now the Federal Trade Commission’s (FTC) has issued a statement on where they stand.

In a post, the FTC says it supports companies that decide to go with the direct-to-consumer sales model as it gives consumers a choice of which method to go with - direct or with a dealer. The FTC also goes onto say that decision lies in hands of the state government, not federal.

Now this post comes up as the Michigan senate hears a bill creating an exception in state law to allow manufacturers of "autocycles" - enclosed three-wheelers that are more like cars than motorcycles - to do direct sales in the state. One company that will benefit is Elio Motors who is getting ready to sell their three-wheeled vehicle.

"Michigan's consumers would more fully benefit from a complete repeal of the prohibition on direct sales by all automakers," said the commission.

Source: The Detroit News, Federal Trade Commission