Elon Musk, CEO of Tesla Motors, must be giddy right about now, while dealer associations in Arizona, Maryland, New Jersey, Texas, Virginia, and Massachusetts are probably cringing.
That's because three highly ranked officials with the U.S. Federal Trade Commission (FTC) have publicly opposed current state laws that ban manufacturers from selling automobiles to consumers without a traditional dealer network.
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director of the Bureau of Competition; and Martin Gaynor, director of the Bureau of Economics, claim these laws are outdated and “bad policy,” pointing out that the Internet has changed how people shop, not just for everyday items but also for more expensive products.
They also urged lawmakers to be skeptical of auto dealers' arguments that they need protection.
“Change can sometimes be difficult for established competitors that are used to operating in a particular way, but consumers can benefit from change that also challenges longstanding competitors,” they wrote.
Their views do not necessarily reflect those of the commission, however.
Source: autonews.com
That's because three highly ranked officials with the U.S. Federal Trade Commission (FTC) have publicly opposed current state laws that ban manufacturers from selling automobiles to consumers without a traditional dealer network.
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director of the Bureau of Competition; and Martin Gaynor, director of the Bureau of Economics, claim these laws are outdated and “bad policy,” pointing out that the Internet has changed how people shop, not just for everyday items but also for more expensive products.
They also urged lawmakers to be skeptical of auto dealers' arguments that they need protection.
“Change can sometimes be difficult for established competitors that are used to operating in a particular way, but consumers can benefit from change that also challenges longstanding competitors,” they wrote.
Their views do not necessarily reflect those of the commission, however.
Source: autonews.com
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| Photo: Tesla |