Florida governor Ron DeSantis today signed a law which prohibits sales of cars by manufacturers direct to consumers.
Titled HB 637, the measure prevents most automakers from selling directly to consumers, requiring them to rely on franchised dealerships instead starting this July. Other provisions in the law limit the influence car manufacturers can exert over retailer inventories and prices while protecting dealers' rights to ignore MSRPs and choose their own model mix.
Why would such a law exist at all? Well, that one's easy: "The Florida Automobile Dealers Association (FADA) was heavily involved in writing and pushing the legislation through the state government," writes CBT News' Colin Velez. The bill targets automakers–with one spectacularly important exemption1–who would like to sell vehicles directly to the consumer rather than through the extractive world of car dealerships, with all its polyester and dodgy financing and four square sheets.
1. Tesla.
