Staff Favors Repeal Noting It Would Enhance Competition, Benefit Consumers
Federal Trade Commission staff, in response to a request from State Senator James Oberweis, provided written comments to the Illinois State Senate on the competitive impact of repealing the state’s prohibition on the sale or long-term lease of vehicles on Sundays. The staff comment states that repealing the mandatory Sunday closing provisions of the Illinois Vehicle Code will enhance competition and benefit consumers.
“The current law makes it more difficult for Illinois consumers to comparison shop and raises their search costs, which may lead to higher prices, less favorable terms of sale and lease, reduced output of sales and service, and a market that is unresponsive to consumer preferences,” said staff in their written comments.
In responding to Illinois Senate Bill 2629, the FTC staff comment notes that because auto dealers also provide repair services and sell replacement parts, probable effects of the law extend beyond vehicle sales and long-term leasing. In the view of FTC staff, Illinois law currently eliminates the possibility of competition among auto dealers to determine the Sunday hours of operation that would be most responsive to consumer preferences and most beneficial to consumers.
The Commission vote approving staff’s comments was 4-0.
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