~ Auto Buzz ~: Tesla Gains Renewed Support From FTC For Direct Sales Model

Wednesday, 13 May 2015

Tesla Gains Renewed Support From FTC For Direct Sales Model



Tesla Showroom In California Circa August 2014

In its battles for the right to sell its wares directly to consumers, Tesla has found a valuable ally in the Federal Trade Commission.

Though the FTC has supported Tesla in the past, the agency recently reemphasized its pro-direct sales stance via a post regarding a new proposal working through the Michigan Legislature allowing so-called “autocycles” – i.e., Elio Motors’ wares – to be directly sold to the public, TechCrunch reports.

The autocycle bill – SB 268 – comes just months after Michigan passed legislation to clarify its position on automakers directly selling to the public, which the state has said was always verboten. The clarification, however, left the door open for further conversation on the matter of direct sales, such as the one proposed by SB 268.

The FTC said the final decision involving the business model would remain in the domain of each individual state’s regulators, though it would prefer policymakers to leave said decisions on such business models to both automakers and their consumers “absent some legitimate public purpose” in prohibiting certain selling methods.

[Photo credit: Ming-yen Hsu/Flickr/CC BY-ND 2.0]

The post Tesla Gains Renewed Support From FTC For Direct Sales Model appeared first on The Truth About Cars.

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