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
State laws banning direct sales by auto manufacturers are absurd, suppress innovation, and lead to higher prices and lower consumer satisfaction. There is no logical reason why automobiles cannot be sold in the same manner as all other products. The existing system amounts to a legal monopoly for the auto dealers which, like all monopolies, only serves the interests of the auto dealership owners. Tesla Motors has demonstrated, as Apple did before it, that a manufacturer-owned sales model can produce a much better experience for the consumer.