• Sign in to follow this  
    Followers 0

    Three FTC Officials Call For End To The Anti-Tesla Store Laws


    • Three FTC Officials Call Out Dealer Franchise Laws On Direct Sales

    In a surprising move today, three top officials from the Federal Trade Commission have come out against the laws that ban automakers like Tesla from selling their vehicles directly to consumers.

    Andrew Gavil, director of the FTC's Office of Policy Planning; Deborah Feinstein, director of the Bureau of Competition; and Martin Gaynor, director of the Bureau of Economics wrote in a blog piece on the FTC site that states the dealer franchise laws are a 'bad idea' since it doesn't allow consumers to shop in new ways.

    "For decades, local laws in many states have required consumers to purchase their cars solely from local, independent auto dealers," the three said in the post. "Removing these regulatory impediments may be essential to allow consumers access to new ways of shopping that have become available in many other industries."

    Dealers argue the franchise model works because they compete on price and offer long-term service. However, direct sales offer a threat and could cause other manufacturers to go down the same road. Dealers have turned to lobbyists to sue Tesla in court and urge state representatives to tighten dealer laws. This has only angered the public and legislators from both parties.

    "How manufacturers choose to supply their products and services to consumers is just as much a function of competition as what they sell--and competition ultimately provides the best protections for consumers and the best chances for new businesses to develop and succeed," the three stated in the piece. "Our point has not been that new methods of sale are necessarily superior to the traditional methods--just that the determination should be made through the competitive process."

    Now it should be noted that the posting is of the authors and not the FTC.

    Source: Reuters, FTC

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.com or you can follow him on twitter at @realmudmonster.

    0


      Report Article
    Sign in to follow this  
    Followers 0


    User Feedback


    They have it right, make the dealers compete on service. If you truly offer superior service for a small increase in purchase cost I will buy, but if you as most dealers do, harass me to the point of hating the buying experience and lack of service, then prepare to go out of business.

    There was a reason for these laws long ago, but not any more. Time to update to the 21st century and dealerships who screwed over customers will go away which is what capitalism is all about. Service, Service, Service at a fair price.

    0

    Share this comment


    Link to comment
    Share on other sites

    "Removing these regulatory impediments may be essential to allow consumers access to new ways of shopping that have become available in many other industries."

    ^^This

    0

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

    ×   Your link has been automatically embedded.   Display as a link instead

    Loading...



  • Popular Stories

  • Today's Birthdays

    1. BowTieFarmer
      BowTieFarmer
      (57 years old)
    2. will75
      will75
      (41 years old)
  • Similar Content

    • By dfelt
      Tesla had an email announcement about their newest software. Enhancements to the display that improves maps and autopilot, more intuitive media player and what they are touting as an industry first, Cabin Overheat Protection focused on Child and Pet safety. This is a feature that keeps the interior of the car at a safe temp when the car is off, as they stated made possible by their large battery packs.

    • By William Maley
      It was going to happen sooner or later, but Tesla is taking the state of Michigan to federal court over its ban on direct sales to consumers. According to the suit, Tesla is seeking “to vindicate its rights under the United States Constitution to sell and service its critically-acclaimed, all-electric vehicles at Tesla-owned facilities in the State of Michigan”.
      This suit comes after the Michigan's Secretary of State office denied Tesla a dealership license earlier in the month.
      “The license was denied because state law explicitly requires a dealer to have a bona fide contract with an auto manufacturer to sell its vehicles. Tesla has told the department it does not have one, and cannot comply with that requirement,” said Michigan Department of State Communications Director Gisgie Dávila Gendreau in an email to The Detroit News at the time.
      The law in question was signed back in 2014 by current Governor Rick Snyder which made it illegal for an auto manufacturer to sell vehicles directly to consumers. The law also prohibits a manufacturer from performing service on their vehicles.
      “For the last two years, Tesla has pursued legislation in Michigan that is fair to everyone and that would benefit Michigan consumers. Giving auto dealers a monopoly on car sales benefits them, but harms consumers,” said a Tesla spokeswoman to Automotive News in a statement.
      The lawsuit names Synder, attorney General Bill Schuette, and Michigan Secretary of State Ruth Johnson as defendants. Tesla has also requested for a jury trial. 
      Tesla is seeking a permanent injunction to prevent officials in the state to enforce the relevant part of the law. This would force the state to give Tesla a dealer license.
      We'll be watching closely to see if Tesla can make any headway.
      Source: Automotive News (Subscription Required), The Detroit News

      View full article
    • By William Maley
      It was going to happen sooner or later, but Tesla is taking the state of Michigan to federal court over its ban on direct sales to consumers. According to the suit, Tesla is seeking “to vindicate its rights under the United States Constitution to sell and service its critically-acclaimed, all-electric vehicles at Tesla-owned facilities in the State of Michigan”.
      This suit comes after the Michigan's Secretary of State office denied Tesla a dealership license earlier in the month.
      “The license was denied because state law explicitly requires a dealer to have a bona fide contract with an auto manufacturer to sell its vehicles. Tesla has told the department it does not have one, and cannot comply with that requirement,” said Michigan Department of State Communications Director Gisgie Dávila Gendreau in an email to The Detroit News at the time.
      The law in question was signed back in 2014 by current Governor Rick Snyder which made it illegal for an auto manufacturer to sell vehicles directly to consumers. The law also prohibits a manufacturer from performing service on their vehicles.
      “For the last two years, Tesla has pursued legislation in Michigan that is fair to everyone and that would benefit Michigan consumers. Giving auto dealers a monopoly on car sales benefits them, but harms consumers,” said a Tesla spokeswoman to Automotive News in a statement.
      The lawsuit names Synder, attorney General Bill Schuette, and Michigan Secretary of State Ruth Johnson as defendants. Tesla has also requested for a jury trial. 
      Tesla is seeking a permanent injunction to prevent officials in the state to enforce the relevant part of the law. This would force the state to give Tesla a dealer license.
      We'll be watching closely to see if Tesla can make any headway.
      Source: Automotive News (Subscription Required), The Detroit News
    • By dfelt
      Gizmodo reports Tesla is being sued by 127 people in Norway cause Insane mode is not insane enough.
      http://gizmodo.com/telsa-sued-because-insane-mode-not-insane-enough-1786893579
      Pretty interesting reading, clearly buying the P85D with insane mode is understandably not as insane as a P90D or P100D. Guess these people have more money than brains.
       
    • By William Maley
      In news that will likely not shock anyone, Michigan's Secretary of State office has official denied Tesla a dealership license to sell vehicles in the state. The ruling issued last week follows a hearing earlier this month to review Michigan's initial motion to deny Tesla's request for a license, submitted last November.
      “The license was denied because state law explicitly requires a dealer to have a bona fide contract with an auto manufacturer to sell its vehicles. Tesla has told the department it does not have one, and cannot comply with that requirement,” said Michigan Department of State Communications Director Gisgie Dávila Gendreau in an email to The Detroit News.
      This is due to a state law signed in 2014 which states,  “a vehicle manufacturer shall not … sell any new motor vehicle directly to a retail customer other than through franchised dealers.”
      Tesla has been fighting tooth and nail to sell their vehicles in Michigan for a few years now by lobbying and applying for a license.  As Automotive News notes, Michigan is the most populated state that doesn't have a Tesla gallery or store. 
      "At the urging of local car dealers and GM, Michigan law was changed two years ago to prevent Michigan consumers from buying cars from a Tesla store within the state. As part of the process of challenging the legality of that law, Tesla applied for a license in Michigan. Tesla will continue to take steps to defend the rights of Michigan consumers," Tesla said in a statement to Automotive News.
      Now people outside of Tesla have been trying to change the law. As we reported back in February, a 22-year launched a petition to repeal this law. Also, Rep. Aaron Miller, R-Sturgis introduced a bill into the state's legislature to allow companies like Tesla to do direct sales. But as The Detroit News reports, the bill has sat stagnant.
      “The discussion’s not over but for this session I think we’ve reached that point of no progress. I think the clock is going to run out on us,” said Miller.
      Now it should be stated that anyone from Michigan who wants to order a Tesla can do so from the company's website. You'll have to pickup your vehicle outside of the state however, the closest ones being in Ohio.
      Where does Tesla go next? That is anyone's guess at the moment. But as Tesla's general counsel Todd Maron said back in May, the company would either go to court or the legislation to make the change. Our hunch is Tesla will be going for the former.
      Source: Automotive News (Subscription Required), The Detroit News

      View full article
  • Recent Status Updates

    • surreal1272

      If you take what someone told you in private and then blab it to everyone because you are now mad at that someone, then you are nothing more than a petty child that no one should trust. 
      · 0 replies
    • surreal1272

      It's so nice to have several folks here who care so much about my life that they have to gossip about it on another site. 
      · 0 replies
    • surreal1272

      Some victims will never see themselves as anything else other than a victim. 
      · 0 replies
  • Who's Online (See full list)