“The point is to protect the consumer”

May 14, 2013

A good one from Kim Ruhl: Tesla Motors sells high-end electric cars direct to the consumer. But North Carolina’s car dealers have proposed a law prohibiting sales except through — wait for it — car dealers. Robert Glaser, president of the N.C. Automobile Dealers Association, comments, apparently without irony: “The whole point of the system is to protect the consumer.” Quote from here, more here.

Update (Nov 26, 2013): Tesla goes to DC.
Update (Mar 19, 2014): Tyler explains.


3 Responses to ““The point is to protect the consumer””

  1. Larry White Says:

    Unfortunately, almost all of the states have dealer protection laws. This has added to the difficulties of the U.S. auto manufacturers, since it has been difficult for them to rationalize their dealer structure and/or experiment with other models of retail distribution.

  2. David Backus Says:

    And here are professors: “As college costs soar, professors are concerned that [online courses] may primarily become a way for universities to reduce expenses.” Duh!


  3. […] the rationale, typically because incumbents use it to protect themselves from competition (eg, Tesla, chickens, braiding […]

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