FTC opinion: Who decides how consumers should shop?

Great article. Is there anything they as an agency could do on a national level? Would think it would require a court challenge or Congress to act.

"The views expressed are their own, and do not necessarily reflect the opinion of the Commission or of any individual Commissioner."

dsm363 said:

Great article. Is there anything they as an agency could do on a national level? Would think it would require a court challenge or Congress to act.

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I see no evidence of positional authority that would put them in a position to act directly (and plenty of evidence that they don't have authority to act directly).

As I see it, they've exerted something potentially much more powerful - moral or "idea" authority. Their position in society, plus the reasonable and well-reasoned approach they take to the issue is going to force a strong reaction from those that like the status quo and are working hard to maintain it. I suspect, though I can't know it for certain right now, that the reaction to the blog post will further cast the forces in favor of the status quo in an unfavorable light (in the same way that Christie managed to alienate many shades of the American political spectrum).

djp said:

True, but that's a standard disclaimer on all FTC blog posts. You missed the first half of the footer:

The authors hold high level positions in the FTC so this is a good indication of what the FTC's opinion will be if they're ever asked to rule on the question. The authors are also respected experts in their field whose opinions can help sway legislators and regulators. Overall this is a big win for Tesla.

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I don't deny any of that, but the title of the thread doesn't say "Some hint of what the FTC's opinion might be: ..." Just making sure everyone here knows that this wasn't an official stance taken by the FTC.

djp said:

Federal Trade Commission officials have posted a well-reasoned letter of support for Tesla. We're still waiting for the White House to respond to the petition, but this may be even better.

Who decides how consumers should shop? | Federal Trade Commission

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I placed a complaint with them over a year ago without response since I couldn't buy my car in Virginia. Others should too. It may bring issue to front of their issues

FTC staff support Tesla direct sales model

This was posted and is being discussed in the New Jersey thread but I think it's so important that it should have it's own thread where others see it:
Who decides how consumers should shop? | Federal Trade Commission

Staff of the Federal Government agency responsible for competition and consumer protection are opposed to "protectionist" state laws that prevent Tesla from selling directly to consumers. This is huge. It debunks the auto dealer cartel's arguments that the dealers provide competition, and says it's new companies and business models like Tesla which are the competition. This should be sent to every legislator in every problem state, and should be quoted whenever we need to respond to auto dealer cartel talking points.

Wow, excellent find. This is as good of a rebuke of the auto dealers' meritless arguments to stifle Tesla's direct sales model as you'll find, and it is from the FTC which adds even more weight.

I like this a lot.

Pretty much torpedoes to rusty old boats Dealers are trying to float! Wouldn't think three Staff Directors wouldn't put this out without support. Good day for consumer choice and competition in America.

If a company does feel their interstate trade is being inhibited does a complaint to the FTC trigger anything or only a court battle?

I believe the Commision can act alone on their own volition,.. or in response to complaint(s) of "unfair competition". Of course it may thereafter be off to court ... FTC v. Dealers. ....Has a nice ring to it.

Great commentary by the FTC staff, nice to see an agency finally make a statement about this

slipdrive said:

I believe the Commision can act alone on their own volition,.. or in response to complaint(s) of "unfair competition". Of course it may thereafter be off to court ... FTC v. Dealers. ....Has a nice ring to it.

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That might be the route to go if that is indeed how things work. Of course if FTC lost that might set Tesla back although hopefully not any further back than they are now.

As others have said previously, I really think that the dealers are going to rue the day they picked this fight with Elon.

Interesting that NADA means "nothing" in spanish-- portentous?

This is great, well reasoned, and continues the momentum to progress away from the single purchase model. Good job!

Just added a comment after the article. I hope many many others will do the same. It might really make a difference! We have got our foot in the door!

BTW, I am an American citizen (soon to be dual with Canada).

From the FTC blog:

FTC staff have commented on similar efforts to bar new rivals and new business models in industries as varied as wine sales, taxis, and health care. We have consistently urged legislators and regulators to consider the potential harmful consequences this can have for competition and consumers.

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This doesn't sound like random chit chat on Thursday morning at the water cooler. Plus they are directors of three different departments, each directly related to the subject. They say "potential harmful", and they mean it.

While I fully support Tesla's direct-sales model, this appears to be a "state's rights issue." We're going to have to fight this state by state. This blog post is certainly well-reasoned, but the FTC's opinions can't override state laws.