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FTC complaint

Discussion in 'TSLA Investor Discussions' started by ppl, Jun 5, 2013.

  1. ppl

    ppl Member

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    Being from Virginia I had to pick up my car and purchase out of state. I have filed on line complaint with FTC and would hope others would as well. This denial of dealerships is really anticompetitive practice. The states involved have no issues with car safety since they follow the state inspection and are allowed to be registered and driven in their states. They also don't seem to have any problem collecting sales and property taxes as well. The dealership laws are directed at protecting dealerships from their own brand names not to prevent fair competition from other car companies.

    The states do have a right to protect their citizens and license, for instance doctors with each state involving own process. However they are not seeking to protect their citizens from these cars since they readily register them.

    Speak out to your elected officials as well
     
  2. ksdprasad

    ksdprasad Member

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  3. imherkimer

    imherkimer Member

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    Hear! Hear!
    FTC should become involved.
     
  4. lolachampcar

    lolachampcar Active Member

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    As Elon said in the shareholder's meeting, it will be the customer that drive the solution to this one as Democracy is clearly broken.
     
  5. Curt Renz

    Curt Renz Active Member

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    #5 Curt Renz, Jun 5, 2013
    Last edited: Jun 5, 2013
    Well done, ppl. Even though I live in Illinois where direct Tesla sales and service is not being impeded, you inspired me to send the following message to The FTC's Bureau of Competition whose e-mail address is [email protected] :

    [FONT=&amp]
    Dear FTC:[/FONT]


    [FONT=&amp]My brother cannot buy a Tesla Model S electric car in North Carolina. My cousin cannot buy one in Virginia. Others cannot buy one in Texas.[/FONT]

    [FONT=&amp]If someone in one of those states does pay to have a new Model S shipped to them from another state, their state is perfectly willing to register the car and accept payment of sales tax. Therefore there are no safety issues.[/FONT]

    [FONT=&amp]The problem is state laws mandating that cars be sold and serviced by franchised dealerships. The requirement that consumers endure the added expense of middlemen was originally intended to keep manufacturers from stepping on the toes of their own franchised dealers. Polls indicate that consumers overwhelmingly would prefer Tesla’s methods of direct sales and service. Yet state legislators influenced by the campaign funding from the dealership lobbies actively work against the wishes of their own constituents.[/FONT]

    [FONT=&amp]Tesla Motors has never had any franchised dealers. In most states they have stores for demonstrating their cars, but they are sold through orders taken online. [/FONT]

    [FONT=&amp]Dealerships make most of their money through service. The Tesla service division has been mandated to add no profit to the company. Electric cars rarely have problems, but in the event one does a Tesla Ranger brings a Model S loaner to the owner and drives the owner’s car back to a Tesla service center. Would a dealer be willing to do this? And at no profit? [/FONT]

    [FONT=&amp]Consumers desires are being ignored while state legislatures ignore the US Constitution’s requirement that interstate commerce be unimpeded. I would hope that the FTC will perform its proper duty to American citizens by insuring that free interstate commerce overrides antiquated state laws requiring cars be sold and serviced through franchised dealerships.[/FONT]

    [FONT=&amp]Regards,[/FONT]
    [FONT=&amp]Curt Renz[/FONT]
     
  6. brianman

    brianman Burrito Founder

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    I wouldn't state it quite this way, and I'm not sure Elon would either.
     
  7. aznt1217

    aznt1217 Active Member

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    Slightly confused. I thought that the cars couldn't be "sold" or pushed at the Tesla Galleries.

    So... if I lived in Virginia, I can't order the car online and have it delivered to my house? I'd need it delivered to the state border or something?
     
  8. Citizen-T

    Citizen-T Active Member

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    And...we in NC are not *yet* prevented from buying Teslas. It just looks likely that we will be soon.
     
  9. aznt1217

    aznt1217 Active Member

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    So the process is Go to Gallery to learn about Model S-> Go home, order online-> Configure-> Deliver outside of state (is this forced?)-> Drive car back in state and register it?

     
  10. brianman

    brianman Burrito Founder

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    It's weird that the experience is more like importing a car from a foreign country in some ways.
     
  11. yobigd20

    yobigd20 Well-Known Member

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    wow. lets do this!! federal ruling to make it legal for Tesla to sell everywhere!!
     
  12. Curt Renz

    Curt Renz Active Member

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    I just now sent e-mails similar to the one I sent to the FTC to the three people who represent me in Congress.
     
  13. ppl

    ppl Member

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    My own experience was test drive in wash dc store. Ordered over Internet. Had choice of picking up car in wash dc or Rockville md. On inspecting car in Rockville md I then paid for it on line. Sale recorded as California with temp tag from California. Registered in Virginia with tesla overnighting me a check for DMV tax title and proper paper work. Very disappointed in Virginia not granting deal or rights. Good news is that I know of five other teslas in my neighborhood. They can hinder but not stop. Hate to see company taking time and money to fight association which only really cares about their money and dues. A bribe (settlement)would most likely make the problem go away but on principal would not encourage that
     
  14. brianman

    brianman Burrito Founder

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    Technically they can. They can find ways to block registration of the vehicle so that it's not legal for driving in the state. But let's hope it doesn't get that crazy.
     
  15. ppl

    ppl Member

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    You don't have to live in Texas Virginia or North Carolina to complain. This is about the government allowing free commerce across state lines.

    I would not seek to advise musk and I recognize he has a separate responsibility to space x. It would be nice if he reviewed other sites for space x launch facility. Maybe 5 miles over Texas border
     
  16. kenliles

    kenliles Active Member

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    which would include using an oil rig island :)
     
  17. Zaxxon

    Zaxxon Member

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    Curt, thanks for posting your letter. I used a couple of lines from it while composing my own letter which I've sent to the FTC and my three congressional representatives. I'm not holding my breath for them to jump into action, but at least I've made my position known. If enough folks do that, maybe we'll get some assistance.
     
  18. mitch672

    mitch672 Active Member

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    What about setting up some kind of online petition, that members could "digitally sign", then submit the site/print it out and snail mail it to all of the senate, house, and Mr Obama/FTC?
     
  19. ppl

    ppl Member

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    The online complaint is extremely fast and I think getting a thousand complaints, each having to be addressed would attract a lot more attention than one with a thousand signatures
     

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