Rivian is contesting Ohio's ban that prevents car manufacturers from selling directly to consumers without going through dealerships. The electric vehicle company describes this state law as 'irrational in the extreme' because it limits competition and consumer choice. Rivian notes a disparity in the treatment of companies, as Tesla is permitted to sell directly to customers. The lawsuit argues that the ban acts as economic protectionism, favoring existing auto dealers and prioritizing their profits over consumer interests.
Rivian is suing Ohio's department of motor vehicles over the state's ban on car companies bypassing dealerships to sell cars directly to consumers.
Rivian argues that Ohio's ban on direct sales is 'irrational in the extreme,' decreasing competition and limiting consumer choice.
Ohio's prohibition is described as 'pure economic protectionism for the benefit of existing auto dealers,' prioritized over consumer interests.
The decades-old dealership model evolved in the early 1900s due to concerns about monopolistic practices, leading to stringent state franchise laws.
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