Tesla Could Be Poised For Big Win: FTC To Hear Pros & Cons Of Franchise Laws

Thanks for posting this. In addition, if you would like to make your opinion on the matter known, there is an online form for public comment, and I've included the link below.
FTC to Host Public Workshop Examining the U.S. Auto Distribution System Workshop Will Explore Competition, State Regulations, and Emerging Trends in the Industry, Project No. P131202

Lanny said:

The FTC will hold a panel discussion on January 19, 2016 at 2:15 PM in Washington, DC on the direct distribution model of car sales that includes Todd Maron, General Counsel at Tesla.

Tesla Could Be Poised For Big Win: FTC To Hear Pros Cons Of Franchise Laws

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Looks like a good opportunity for Tesla owners to be there and voice their opinions. I for one am still 100% in favor of the direct model that Tesla has.

Thanks for posting!

Lanny said:

The FTC will hold a panel discussion on January 19, 2016 at 2:15 PM in Washington, DC on the direct distribution model of car sales that includes Todd Maron, General Counsel at Tesla.

Tesla Could Be Poised For Big Win: FTC To Hear Pros Cons Of Franchise Laws

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Interestingly Elio has already won direct sales exemptions in many states, but only for "auto-cycles"

I hope this panel discussion will be more than just a patronizing move on behalf of the FTC. I wonder if this is preliminary to having informal discussions with members of Congress to contemplate legislation in the 2017-18 session.

Or could it be to begin to consider how closely these dealer franchise laws are to monopolies/cartels that really do not benefit a free market and preparatory to filing antitrust actions?

"Big win" seems a bit hyperbolic since as the article points out, the FTC doesn't have any legislative power. Still, not a bad sign. I do wish events like this would pay attention to states that prevent Tesla from building service centers as well, instead of focusing exclusively on sales. (Is Michigan the only state that does this?) As I see it, preventing Tesla from servicing cars is even more obviously anti-consumer and anti-competitive then preventing them from selling cars is.

Didn't the FTC already put out a paper supporting Tesla's case on this? (non-binding on the states obviously)

Indeed they did.

green1 said:

Didn't the FTC already put out a paper supporting Tesla's case on this? (non-binding on the states obviously)

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I believe members of the FTC put out opinion pieces about direct auto sales. However, as I recall, nothing official.

pthill65 said:

Thanks for posting this. In addition, if you would like to make your opinion on the matter known, there is an online form for public comment, and I've included the link below.
FTC to Host Public Workshop Examining the U.S. Auto Distribution System Workshop Will Explore Competition, State Regulations, and Emerging Trends in the Industry, Project No. P131202

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Thanks for the link. If the numbering system is correct, it appears that I had comment #22. That's not very many, we need everyone to take the time to comment.

reddy said:

Thanks for the link. If the numbering system is correct, it appears that I had comment #22. That's not very many, we need everyone to take the time to comment.

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I'm on it. If past is prologue, the arguments in favor of the dealership model will literally be laugh lines. They add cost without value, period. ML

MikeL said:

I'm on it. If past is prologue, the arguments in favor of the dealership model will literally be laugh lines. They add cost without value, period. ML

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I focused on the fact that Texas has an EV incentive. Texas forces me to buy my EV out of state. And that disqualifies me for the EV incentive since it is limited to purchases from Texas auto dealers.

That goes beyond the anti-competitive protection for Texas auto dealers, it causes actual damage to Texas taxpayers.

I also used Dell as a great example of what can happen when manufacturers sell directly to consumers vs buying at a store like Computer Land. We have better choice, better quality, better service and lower cost.

Dealers know that the cheese is being moved on them. They are in a delay game. They can't win in the long run, and they know it.

My comments were assigned #29. I'd like to see every Tesla owner weigh in on this. A few tens of responses aren't going to garner any attention.

reddy said:

I focused on the fact that Texas has an EV incentive. Texas forces me to buy my EV out of state. And that disqualifies me for the EV incentive since it is limited to purchases from Texas auto dealers

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The "purchase out of state" is a bit overblown as you order from your computer and take delivery at the Service Centre. Yes, the paperwork says you bought it in CA, but that's just a formality. The Texas incentive only lasted for a few months and wasn't a significant amount to start with. Of course it's annoying that the dealer cartel can buy the legislators, but they have always been for sale, so nothing new.

jerry33 said:

The "purchase out of state" is a bit overblown as you order from your computer and take delivery at the Service Centre. Yes, the paperwork says you bought it in CA, but that's just a formality. The Texas incentive only lasted for a few months and wasn't a significant amount to start with. Of course it's annoying that the dealer cartel can buy the legislators, but they have always been for sale, so nothing new.

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The main and most important part is that our so called impartial texas lawmakers deliberately crafted an incentive that required purchase through an auto dealer.
The size of auto dealer lobbying wallet was too large for most politicians to ignore.

It seems to me like the State of Texas (or Republic, depending on with whom you speak) could use an owner's rally, like what happened in Iowa and Michigan over the last two years.

reddy said:

I focused on the fact that Texas has an EV incentive. Texas forces me to buy my EV out of state. And that disqualifies me for the EV incentive since it is limited to purchases from Texas auto dealers.

That goes beyond the anti-competitive protection for Texas auto dealers, it causes actual damage to Texas taxpayers.

I also used Dell as a great example of what can happen when manufacturers sell directly to consumers vs buying at a store like Computer Land. We have better choice, better quality, better service and lower cost.

Dealers know that the cheese is being moved on them. They are in a delay game. They can't win in the long run, and they know it.

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Vexar said:

It seems to me like the State of Texas (or Republic, depending on with whom you speak) could use an owner's rally, like what happened in Iowa and Michigan over the last two years.

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We did that. Two times (maybe three). However in Texas that and $5 will get you a hot chocolate at Starbucks. Our legislators only care about how much money they get. If you don't come up with the payola, you don't get whatever it is you want changed.

Zythryn said:

I believe members of the FTC put out opinion pieces about direct auto sales. However, as I recall, nothing official.

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That's correct. I think it was three people and they said their views didn't reflect official policy or something like that.

It says in the article itself:
"The FTC is a federal agency, not a legislative body, so there's little direct action it could take to upend the longstanding state franchise model."

Unless a federal law is passed (which is not what FTC does), I don't think the situation will change significantly. It'll still be a state-by-state battle.

green1 said:

Didn't the FTC already put out a paper supporting Tesla's case on this? (non-binding on the states obviously)

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Yes, when Michigan Senator, Darwin Booher who represents our district, wanted to bypass Michigan dealers to help another constituent sell Autocycles. He is not very sympathetic to Tesla, however. It is all outlined in the attached link. http://www.detroitnews.com/story/business/autos/2015/05/11/ftc-michigan-tesla/27122673/ I did give him a ride though so at least he knows what a Tesla is like.