FTC defends Tesla, warning states not to shut down retail sales to the public

The popular Tesla Model-S

The Tesla Model S

The automobile company Tesla has had an ongoing battle with certain states for the right to sell their vehicles directly to consumers. Arizona, New Jersey, Texas, and Virginia have banned the highly popular Model S. Yesterday, the Federal Trade Commission defended the innovative automobile manufacturer, stating that shutting down or preventing retail sales directly to the consumer is “bad policy for a number of reasons.” The FTC also went on to say, “American consumers and businesses benefit from a dynamic and diverse economy where new technologies and business models can and have disrupted stable and stagnant industries, When that occurs in an industry long subject to¬†extensive regulation, existing businesses often respond by urging legislators or regulators to restrict or even bar the new firms that threaten to shake up their market.”

A glimpse at the interior of the Model S

A glimpse at the interior of the Model S

Numerous laws that protect the business model for car manufacturers in certain states are decades-old, and some of them actually threaten or prevent innovation and technological advances. “Our point has not been that new methods of sale are necessarily superior to the traditional methods — just that the determination should be made through the competitive process,” The FTC said. “Change is a critical dimension of that competitive process.”

The decision is ultimately up to the states, but I certainly hope that those states do realize that leaps in technological advances ultimately set the bar for competitiveness, which leads to continuous innovation. In other words, out with the old, in with the new.

About Author

A self-taught writer with some college (a nice way of saying that he didn't graduate), Nate fell in love with pocket billiards in his mid teens, and has spent more than half of his life as a student of the sport. Yes, it's a sport. He will argue incessantly if someone claims otherwise. He also loves video games, his favorite game being Dark Souls, followed by Dark Souls as a close second, and The Last of Us being his fourth favorite game (Dark Souls is his third favorite game). He has a tendency to ramble on when you strike up a conversation with him, so asking him for a short bio is a dangerously boring proposition and not recommended. Otherwise he tends to keep to himself. He is also an editor and founding member of Tech Gen Mag, living in southern California.

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