Missouri Blocks Ban on Direct Sales to Consumers

During the closing days of the Missouri legislative session, our Association expressed its strong opposition to language added to a House Bill dealing with all-terrain vehicles, off-road vehicles and utility vehicles, without hearings or any opportunity for public input. The substitute version, which passed the Senate, would have forced Tesla Motors to abandon its direct-to-consumer sales model in Missouri.

Current Missouri law already tips the scale of fair play in favor of the auto dealer, providing protections which keep manufacturers from competing directly with their franchised dealers. This legislation would have enabled the State to decide not only the rules, but also who is allowed to play in the game.

While the amended bill did not deal with the manufacturers of farm equipment, it was added to a bill dealing with all-terrain, off-road and utility vehicles. The leap from motor vehicle dealers to equipment dealers is not a long one, as we have recently seen in other states where farm equipment has been defined as a “motor vehicle.”

As much as our members would like to do business with a dealer network, the ongoing consolidation of dealerships removes that option for many of our member companies, and any law prohibiting direct sales by a manufacturer to end users is not in our membership’s best interest.

We are pleased to report that House leadership reversed course and did not bring the amended bill up for a vote.