Rivian filed a lawsuit in Ohio to enable direct sales of its electric vehicles, arguing that state laws harm consumer choice and competition. The company contends that it can sell directly in 25 states, and the current prohibition increases costs for consumers. Rivian seeks permission to apply for a dealership license, claiming that a 2014 law, influenced by lobbying from the Ohio Automobile Dealers Association, unfairly blocks new manufacturers. Rivian asserts that allowing direct sales is consistent with the precedent set by Tesla, which has been selling in Ohio since 2013.
Ohio's prohibition of Rivian's direct-sales-only business model is irrational in the extreme: it reduces competition, decreases consumer choice, and drives up consumer costs and inconvenience - all of which harm consumers - with literally no countervailing benefit.
Allowing Rivian to sell directly would not be treading new legal ground; Tesla has had a license to sell in Ohio since 2013 and can sell directly to consumers.
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