Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

FTC Staff Urges Michigan to Consider Allowing Direct Car Sales

May 12, 2015
2 min to read


Staff members at the Federal Trade Commission are imploring Michigan to open the door to direct sales by Tesla Motors Inc. and other car makers, reported The WSJ.


In a letter sent to Michigan state Sen. Darwin Booher by the commission staff members, the agency urges the state legislature to “consider abandoning the direct sales prohibition in Michigan’s existing law, and instead permit manufacturers and consumers to re-engage the normal competitive process that prevails in most other industries.”

Ad Loading...


In October 2014 Michigan passed a law that prohibited direct sales. There is a senate bill pending that would modify the language to allow direct sales of “autocycles” — which would presumably allow direct sales for Elio Motors, a startup planning to sell a three-wheeled carlike vehicle.


The FTC’s letter stated it was in response to a request for comments by Mr. Booher on the pending Senate bill.


Tesla has fought car dealers state by state in its efforts to sell cars directly to consumers without independent dealers. The Silicon Valley car maker has said dealers won’t understand how to market the electric vehicle. Meanwhile, independent dealers don’t want car makers to have a precedent in cutting them out of the sales channel.


Michigan, Arizona and Texas are the only states where Tesla can’t sell direct to consumers from retail outlets. People in those states can buy cars online from California and have them shipped to their homes.


At the time of the passage of the law, Gov. Rick Snyder said he hoped the legislature would address the issue again. A spokesman for the governor didn’t respond Tuesday to a request for a response to the letter.

Ad Loading...


It isn’t the first time the FTC has weighed in on the issue. The commission staff previously had written similar position pieces protesting the efforts by some states to restrict Tesla’s direct sales efforts.


In many states, Tesla has come to an accommodation with dealers by agreeing to limit the number of stores in the state.


Tesla stated in response to the letter: “We agree wholeheartedly with the FTC. States should not limit how consumers buy their cars.”

More Industry

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →