FTC Officials Back Tesla's Direct Sales Model

OnePercenter

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Apr 10, 2013
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Tesla has been getting pushback in several states where auto dealers have been lobbying against the electric vehicle (EV) maker's direct sales model which circumvents the car dealership apparatus long established in many U.S. markets.

Now the cavalry may be coming to the Palo Alto, Calif.-based company's rescue in the form of the Federal Trade Commission.

Several FTC officials on Thursday weighed in on the issue in a post on the commission's official blog, suggesting that long-standing laws prohibiting direct sales of new vehicles are no longer useful, practical, or protective of consumers and characterizing such rules as "bad policy."

"For decades, local laws in many states have required consumers to purchase their cars solely from local, independent auto dealers. Removing these regulatory impediments may be essential to allow consumers access to new ways of shopping that have become available in many other industries," wrote FTC directors Andy Gavil, Debbie Feinstein, and Mart

FTC Officials Back Tesla's Direct Sales Model | News & Opinion | PCMag.com

Conservatives are constantly complaining that "taxes and regulations" are keeping their wealthy "job creators" from creating jobs. I can't wait to see them come out against this. I don't know who they hate more, American auto companies or electric cars, or Americans (except the rich).
 
Tesla has been getting pushback in several states where auto dealers have been lobbying against the electric vehicle (EV) maker's direct sales model which circumvents the car dealership apparatus long established in many U.S. markets.

Now the cavalry may be coming to the Palo Alto, Calif.-based company's rescue in the form of the Federal Trade Commission.

Several FTC officials on Thursday weighed in on the issue in a post on the commission's official blog, suggesting that long-standing laws prohibiting direct sales of new vehicles are no longer useful, practical, or protective of consumers and characterizing such rules as "bad policy."

"For decades, local laws in many states have required consumers to purchase their cars solely from local, independent auto dealers. Removing these regulatory impediments may be essential to allow consumers access to new ways of shopping that have become available in many other industries," wrote FTC directors Andy Gavil, Debbie Feinstein, and Mart
FTC Officials Back Tesla's Direct Sales Model | News & Opinion | PCMag.com

Conservatives are constantly complaining that "taxes and regulations" are keeping their wealthy "job creators" from creating jobs. I can't wait to see them come out against this. I don't know who they hate more, American auto companies or electric cars, or Americans (except the rich).

Did you read the fucking article you posted?

Didn't think so.

It clearly points out that there are laws on the books that prohibit Tesla from selling cars directly. That is a regulation that is keeping a job creator from creating jobs.

I can't wait to watch you claim that the fact that three FTC officials admit that these laws exist somehow proves they don't.
 
Tesla has been getting pushback in several states where auto dealers have been lobbying against the electric vehicle (EV) maker's direct sales model which circumvents the car dealership apparatus long established in many U.S. markets.

Now the cavalry may be coming to the Palo Alto, Calif.-based company's rescue in the form of the Federal Trade Commission.

Several FTC officials on Thursday weighed in on the issue in a post on the commission's official blog, suggesting that long-standing laws prohibiting direct sales of new vehicles are no longer useful, practical, or protective of consumers and characterizing such rules as "bad policy."

"For decades, local laws in many states have required consumers to purchase their cars solely from local, independent auto dealers. Removing these regulatory impediments may be essential to allow consumers access to new ways of shopping that have become available in many other industries," wrote FTC directors Andy Gavil, Debbie Feinstein, and Mart
FTC Officials Back Tesla's Direct Sales Model | News & Opinion | PCMag.com

Conservatives are constantly complaining that "taxes and regulations" are keeping their wealthy "job creators" from creating jobs. I can't wait to see them come out against this. I don't know who they hate more, American auto companies or electric cars, or Americans (except the rich).

Did you read the fucking article you posted?

Didn't think so.

It clearly points out that there are laws on the books that prohibit Tesla from selling cars directly. That is a regulation that is keeping a job creator from creating jobs.

I can't wait to watch you claim that the fact that three FTC officials admit that these laws exist somehow proves they don't.

State laws.
 
American business is being given a boost and nobody has a comment?

How, exactly, is an opinion written by 3 government bureaucrats that have no power to overturn regulations or laws they object to going to boost business?

Actually they do have the power in preventing some states from disallowing Teslas sales model. Federal trumps state.

As an American I would think you'd see this as good news.
 
FTC Officials Back Tesla's Direct Sales Model | News & Opinion | PCMag.com

Conservatives are constantly complaining that "taxes and regulations" are keeping their wealthy "job creators" from creating jobs. I can't wait to see them come out against this. I don't know who they hate more, American auto companies or electric cars, or Americans (except the rich).

Did you read the fucking article you posted?

Didn't think so.

It clearly points out that there are laws on the books that prohibit Tesla from selling cars directly. That is a regulation that is keeping a job creator from creating jobs.

I can't wait to watch you claim that the fact that three FTC officials admit that these laws exist somehow proves they don't.

State laws.

I am sure you think you scored some kind of point there, even if no one else can comprehend it.
 
American business is being given a boost and nobody has a comment?

How, exactly, is an opinion written by 3 government bureaucrats that have no power to overturn regulations or laws they object to going to boost business?

Actually they do have the power in preventing some states from disallowing Teslas sales model. Federal trumps state.

As an American I would think you'd see this as good news.

Actually, they don't. They are tasked solely with policing businesses, not state laws.

About the FTC | Federal Trade Commission

Please, tell me again how you are a business man who understand regulations so well that you never get anything wrong.
 
Did you read the fucking article you posted?

Didn't think so.

It clearly points out that there are laws on the books that prohibit Tesla from selling cars directly. That is a regulation that is keeping a job creator from creating jobs.

I can't wait to watch you claim that the fact that three FTC officials admit that these laws exist somehow proves they don't.

State laws.

I am sure you think you scored some kind of point there, even if no one else can comprehend it.



Texas regulations are so tight, they don't even allow their citizens to test drive a Tesla and-----and Texas anti-consumer laws also won't allow Tesla sales people the freedom to tell Texas citizens how much a Tesla costs, and yet...

...and yet, even as stringent as Texas' anti-consumer laws are - Texas is still the 18th largest consumer of Tesla cars.



Tesla Popularity Contest: Model S Mania in Washington State

There’s also a bit of a multiplier effect at play as Tesla buyers crow about their new rides. “Where we have cars, we’re going to sell more cars,” Hendriks says. “Our customers are actually being our salespeople.”

The data set is painfully small. While Tesla is aiming to produce about 5,000 cars every three months, U.S. buyers are snapping up almost 4 million new vehicles each quarter. But the numbers show fairly clearly that Tesla’s direct-to-consumer sales model is working, even in states where it’s been attacked by car dealers. Massachusetts is at No. 10 on our list of Tesla-dense states, while local dealers have engaged in a protracted legal and legislative battle against the company.

Texas, meanwhile, ranks 18th on the list despite the fact that Tesla isn’t allowed to give test drives in the Lone Star State or even tell prospective buyers how much the car costs. “It’s kind of a pain for Texans to do business with us,” says Diarmuid O’Connell, Tesla’s vice president in charge of business development. “But I think it’s reasonable to assume that if people want the product bad enough, they’ll find out how to do it.”

0829_Tesla_630x420.jpg

A Tesla store in Seattle​

.
 
State laws.

I am sure you think you scored some kind of point there, even if no one else can comprehend it.



Texas regulations are so tight, they don't even allow their citizens to test drive a Tesla and-----and Texas anti-consumer laws also won't allow Tesla sales people the freedom to tell Texas citizens how much a Tesla costs, and yet...

...and yet, even as stringent as Texas' anti-consumer laws are - Texas is still the 18th largest consumer of Tesla cars.



Tesla Popularity Contest: Model S Mania in Washington State

There’s also a bit of a multiplier effect at play as Tesla buyers crow about their new rides. “Where we have cars, we’re going to sell more cars,” Hendriks says. “Our customers are actually being our salespeople.”

The data set is painfully small. While Tesla is aiming to produce about 5,000 cars every three months, U.S. buyers are snapping up almost 4 million new vehicles each quarter. But the numbers show fairly clearly that Tesla’s direct-to-consumer sales model is working, even in states where it’s been attacked by car dealers. Massachusetts is at No. 10 on our list of Tesla-dense states, while local dealers have engaged in a protracted legal and legislative battle against the company.

Texas, meanwhile, ranks 18th on the list despite the fact that Tesla isn’t allowed to give test drives in the Lone Star State or even tell prospective buyers how much the car costs. “It’s kind of a pain for Texans to do business with us,” says Diarmuid O’Connell, Tesla’s vice president in charge of business development. “But I think it’s reasonable to assume that if people want the product bad enough, they’ll find out how to do it.”

0829_Tesla_630x420.jpg

A Tesla store in Seattle​

.

Would you like a list of all the states that have stupid job killing regulations?

u.s. states in alphabetical order

Considering that the idiot that started the thread said that regulations flat out do not negatively impact businesses, and I have consistently argued that they do, I still fail to see the point you idiots are making.
 
How, exactly, is an opinion written by 3 government bureaucrats that have no power to overturn regulations or laws they object to going to boost business?

Actually they do have the power in preventing some states from disallowing Teslas sales model. Federal trumps state.

As an American I would think you'd see this as good news.

Actually, they don't. They are tasked solely with policing businesses, not state laws.

About the FTC | Federal Trade Commission

Please, tell me again how you are a business man who understand regulations so well that you never get anything wrong.

The rules that the FTC make supersedes state law.
 
Business isn't being given a boost. Tesla has been given a boost. Car manufacturers have been given a boost.
 
Actually they do have the power in preventing some states from disallowing Teslas sales model. Federal trumps state.

As an American I would think you'd see this as good news.

Actually, they don't. They are tasked solely with policing businesses, not state laws.

About the FTC | Federal Trade Commission

Please, tell me again how you are a business man who understand regulations so well that you never get anything wrong.

The rules that the FTC make supersedes state law.

Do you have any idea how stupid you sound when you repeat something that you know is wrong?
 
Actually, they don't. They are tasked solely with policing businesses, not state laws.

About the FTC | Federal Trade Commission

Please, tell me again how you are a business man who understand regulations so well that you never get anything wrong.

The rules that the FTC make supersedes state law.

Do you have any idea how stupid you sound when you repeat something that you know is wrong?

So Federal doesn't supersede state?
 
The rules that the FTC make supersedes state law.

Do you have any idea how stupid you sound when you repeat something that you know is wrong?

So Federal doesn't supersede state?

California sued to write laws that supersede federal laws, and won.

That said, as I pointed out earlier, the FTC has no authority over state licensing laws. I even linked to the FTC website where they said that they are tasked with regulating ant competitive practices between businesses. If you could prove that Toyota and Nissan got together to drive Tesla out of the market you could expect the FTC to get involved. Since these laws were written to protect unions long before Tesla was a gleam in Elon Musk's eye the FTC has no jurisdiction over them. All you have is the opinion of a few bureaucrats, it won't do a fucking thing for the stock value of Tesla, so you won't get rich as a result.
 
Do you have any idea how stupid you sound when you repeat something that you know is wrong?

So Federal doesn't supersede state?

California sued to write laws that supersede federal laws, and won.

That said, as I pointed out earlier, the FTC has no authority over state licensing laws. I even linked to the FTC website where they said that they are tasked with regulating ant competitive practices between businesses. If you could prove that Toyota and Nissan got together to drive Tesla out of the market you could expect the FTC to get involved. Since these laws were written to protect unions long before Tesla was a gleam in Elon Musk's eye the FTC has no jurisdiction over them. All you have is the opinion of a few bureaucrats, it won't do a fucking thing for the stock value of Tesla, so you won't get rich as a result.

The point is moot. It's been done.
 
So Federal doesn't supersede state?

California sued to write laws that supersede federal laws, and won.

That said, as I pointed out earlier, the FTC has no authority over state licensing laws. I even linked to the FTC website where they said that they are tasked with regulating ant competitive practices between businesses. If you could prove that Toyota and Nissan got together to drive Tesla out of the market you could expect the FTC to get involved. Since these laws were written to protect unions long before Tesla was a gleam in Elon Musk's eye the FTC has no jurisdiction over them. All you have is the opinion of a few bureaucrats, it won't do a fucking thing for the stock value of Tesla, so you won't get rich as a result.

The point is moot. It's been done.

Yet Tesla has no showrooms in New Jersey.

And, it turns out, federal law actually works in favor of dealerships, and against Tesla.

Tesla?s dealer franchise problem ? Gigaom Research

Interesting.

Please, keep telling me how smart you are.
 

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