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
As an American consumer, I was appalled at the amount of "red tape" both I and Tesla Motors, Inc. had to navigate just to sell me a car in the State of Texas. This is due to the restrictive, special franchised dealership protection laws we have in Texas. These laws do nothing to aide, help, or protect the consumer. They only provide a way for special provisions to be made for a handful of automobile franchisees throughout the state. Time and again, these franchisees lobby our state representatives in Austin to keep these special protections which aims to keep out any competition. In order for Texas, and other states with these laws, to have real competition that benefits the consumer in a free and modern capitalist society, these dealership protectionist laws need to properly be declared as illegal and abolished. If a manufacturer chooses to allow a franchised dealership to resell their vehicles, it should be their right. However, restriction of sales by manufacturers that choose to deal directly with the consumer should not be allowed.