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
Discussions of dealer franchise laws must take into account the history of these laws (i.e., why they were originally established), and determine to what extent, if any, the original conditions exist. An analysis is likely to show that these laws are now being used to stifle competition, rather than to achieve the original goal of consumer protection. If the government wants to protect consumers, it can do so more effectively by regulating a few large corporations rather than thousands of small businesses; therefore, I believe that there needs to be a direction away from the existing dealer franchise laws, to allow corporations to deal directly with consumers (like they do with so many other things). Why should autos be different? The world has changed since the dealer franchise laws were written. We need to come into the 21st century in this area, as we are working to do in so many other areas.