Public Petitions Federal Government to Overturn Dealership Franchise Laws; Tesla Probably Rejoices

5 years ago by Eric Loveday 9

Petition Signature Count

Petition Signature Count as of 4-18 at 9:52 AM

Remember several days back when we posted on Tesla Motors considering taking its dealership battle to the federal level?

Petition Signers are Nearly Anonymous, So We Don't Really Know Who Created This One

Petition Signers are Nearly Anonymous, So We Don’t Really Know Who Created This One

Well, it’s not Tesla’s doing, but that battle is now at the federal level thanks to a petition posted on by Arizona resident K.L.

The petition was created on April 16, 2013 and reads as follows:

We petition the Obama administration to:

Overturn franchise laws that limit auto manufacturers from selling their vehicles directly to consumers.

“Direct manufacturer auto sales are prohibited in almost every state by franchise laws requiring that new cars be sold only by dealers. These laws stifle the auto industry, keep prices of new vehicles up and reduce consumer choices. We need the federal government to step in and protect the consumer’s choice to a free market trade. Consumers have the ability to go to the internet to make informed decisions about what they are buying and should no longer be forced to deal with car dealerships. We the people implore the federal government to nullify these antiquated state laws.”

Where not sure if Tesla Motors got wind of this petition yet, but we do know that over 1,500 US citizens signed it.  The goal, a lofty 100,000 signatures by May 16, could be achieved if word of the petition spreads.

Musk Tweets...No Surprise There

Musk Tweets…No Surprise There

And while this petition doesn’t directly relate to Tesla, we’re sure this is the sort of action Tesla had in mind when it mentioned taking its battle to the federal level.

Follow this link if interested in signing the petition.

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9 responses to "Public Petitions Federal Government to Overturn Dealership Franchise Laws; Tesla Probably Rejoices"

  1. David Murray says:

    These franchise laws benefit nobody except the stealerships. I would rather be able to by my cars directly from the manufacturer at a set price. No more haggling with dealers. No more trying to cram worthless extended warranties and other dealer-add-ons down my throat. I hope this gets passed. So even if I want to buy a Nissan or a Toyota sometime in the future, that maybe I could bypass the stealership.

    1. Jason M. Hendler says:

      DM, this will not repeal these laws in their entirety, just the parts that prevent an automaker from initially selling their vehicles themselves. It is wrong for automakers to use dealerships at first, then compete with those same dealerships, or abandon them completely, by opening their own “stores”.

      Conversely, there is nothing wrong with an automaker who wants to open their own “stores” from the beginning. This does not harm dealers in the way that using dealers initially would.

  2. Steve says:

    Done! I signed it. Thanks for posting.

  3. Nelson says:

    This is one petition I’m glad to sign.


  4. Aaron says:

    I signed it. Although dealerships aren’t nearly as bad as they used to be, there is still plenty of room for improvement. We wouldn’t lose jobs; rather those people who are working in franchised dealerships would likely be rehired into company-owned dealerships. This is a win-win.

  5. GeorgeS says:

    Done. I signed also.

  6. Mark H says:


  7. Roy_H says:

    I signed too, and fully support freedom of choice. Most dealers in my experience have been very good, and I don’t have any objection to dealerships per se. BUT the laws are too strong, and an automotive companies cannot even discipline or remove the franchise from a dealer that is harming their reputation. They must keep supplying them cars! If these laws are repealed, I wouldn’t expect manufacture’s stores springing up, but the mere possibility will make some dealers smarten up, and if the laws are gone, then bad dealers could have their franchise revoked.

  8. Andy W says:

    The issue is that teh manufacturers sell the franchise rights to the dealer, with the promise of not allowing someone else to open one. They pay a large amount for the franchise, so it would be unfair to then let people bypass them.IMO