In his letter to Musk, Frank Alvarez, chief of DMV’s Investigations Division, said the Tesla program “violates California laws.” He described the Tesla offer as “a practice commonly referred to in the vehicle sales industry as offering ‘bird dog fees.’ ”
Alvarez goes on to allege specific violations, citing the California Automobile Sales Finance Act, which says it is “unlawful for any seller to induce or attempt to induce any person to enter into a contract subject to this chapter by offering a rebate, discount, commission, or other consideration, contingent upon the happening of a future event, on the condition that the buyer either sells, or gives information or assistance for the purpose leading to a sale by the seller of, the same or related goods.”
The letter also alleges multiple Vehicle Code violations, including a person acting as a vehicle salesperson without a valid DMV license or temporary permit.
