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US: FTC members back Telsa in direct sale dispute

 |  April 28, 2014

Carmaker Telsa has been backed by three Federal Trade Commission members in its fight to sell automobiles directly to consumers and bypass traditional dealership showrooms, say reports.

Telsa’s sales technique has recently been banned by the New Jersey Motor Vehicle Commission on grounds the process sidesteps a model that protects consumers and the auto industry. Telsa, however, argues that bans on its business model harm the free market.

The FTC published a blog post that slammed the ban, however, arguing that they unfairly favor incumbent businesses. The blog post was authored by FTC members Office of Policy Planning director Andrew Gavil, Bureau of Economics director Martin Gaynor and Bureau of Competition director Deborah Feinstein.

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