The Federal Trade Commission has terminated a 1942 consent order against General Motors Corporation and General Motors Sales Corporation. The order settled antitrust allegations that General Motors Sales Corporation coerced its automobile retail dealers into purchasing accessories supplied by General Motors or from its designated source. The Commission terminated the order in accordance with its "sunsetting" policy, under which the Commission presumes, in the context of petitions to reopen and modify existing competition orders, that the public interest requires terminating orders that have been in effect for more than 20 years.
General Motors is based in Detroit, Michigan.
The consent order at issue prohibited General Motors from coercing or intimidating its automobile retail dealers into purchasing or dealing in accessories or supplies sold and distributed by General Motors or a designated source, and from cancelling any contract, franchise or agreement with its dealers because they refuse to purchase accessories or supplies from General Motors or its designated source. In addition, the order barred General Motors from prohibiting its automobile retail dealers from using or selling automobile parts other than those acquired from General Motors except in certain specified situations.
In February 1995, General Motors Corporation petitioned the Commission to terminate the order. The Commission vote to reopen and set aside the order was 5-0.
Copies of the Commission's order, as well as other documents associated with the case, are available from the FTC's Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580.
(FTC Docket No. 3152)