Warning Shot? FTC Sides With Tesla Tells States Laws Are Anti-Competitive And Harmful

The ongoing debate surrounding Tesla’s direct sales approach – with states like New Jersey and Missouri all but banning the company’s strategy with complex legislation – took a turn in Tesla’s favor the other day. Several Federal Trade Commission officials told these states their dealer-favoring laws constituted a form of “protection that is likely harming both competition and consumers."

The FTC has made similar statements in the past, calling these laws “bad policy” and “protectionist.”
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ParadoX - 5/21/2014 3:29:21 PM

+4 Boost

It is true. It is anti-competitive. Also, it is inefficient. It is inserting a middle man - which raises prices.

MattDarringer - 5/21/2014 7:12:02 PM

-3 Boost

Tesla wants to do price fixing THAT is anti-competitive

kysrsoze1 - 5/23/2014 12:13:57 AM

+2 Boost

That's only true if multiple companies are colluding. One-price strategy has been around for decades. They're still competing on features versus other companies. Jo one says you MUST compete on price. When was the last time that happened with oil companies, cable TV, etc?

TehShibbs - 5/22/2014 6:23:04 PM

0 Boost

Why is this a surprise? New Jersey is the only state I know of where one cannot even pump his/her own gasoline! An attendant MUST do it for you, because otherwise that would take away someone's job. This ruling is just an extension of that old-world thinking.

jeffy210 - 5/22/2014 7:12:14 PM

+1 Boost

Oregon does that too. Threw me for a loop when I got out and attempted to pump my own gas.

vwowner1 - 5/22/2014 11:48:09 PM

+2 Boost

Glad the FTC made this statement. Pumping the gas for you is supposed to reduce risk/increase safety at gas stations. Not sure it does, but don't especially mind it if I am not charged extra for it. It is also very convenient in times of extreme heat or cold.