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Article: State franchise laws under FTC scrutiny; Critics say the system keeps car prices high, but dealers disagree.(News)
- Article from:
- Automotive News
- Article date:
- October 21, 2002
- Author:
CopyrightCOPYRIGHT 2002 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Harry Stoffer
The Federal Trade Commission is taking a fresh look at whether state franchise laws are keeping potential competitors to traditional car dealers out of the marketplace.
The failure of electronic commerce to put a dent in the dealers' share of the business is the main reason for the review. The commission also wants to examine claims, especially from consumer groups, that car buyers pay more than they should because competition is restrained unfairly.
The commission is considering at the same time whether consumers are being hurt by impediments to Internet sales of other products, including wine, medicine, contact lenses, ...