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
Manufacturers should not be prohibited from direct sales to consumers. Whatever historical reasons led to this prohibition do not make sense today. Consumers benefit from the decreased costs that result when the middleman is eliminated. Also, consumers in states which have prohibited direct sales have fewer choices and the beneficial effects of true competition between manufacturers are reduced significantly. As an example, Tesla has brought about revolutionary change in the electric auto market, and yet consumers in many states are unable to benefit from this change if they want to purchase in-state and get their car serviced near their home.