Spotlight Report

Auto Dealer Protectionism: State Limitations on Dealer Competition Should Be Eliminated

posted on in Law & Regulation

North Carolina law limits the establishment and relocation of new-vehicle dealerships in “relevant market areas” where the same make of car is sold. This law was enacted due to the belief that dealers were in an unequal bargaining position with manufacturers. This rationale is now obsolete. Research also indicates that such laws hurt consumers. No justification exists to continue granting special privileges to dealers, especially when those privileges come at the expense of the public.

Daren Bakst is Senior Research Fellow in Agricultural Policy at the Heritage Foundation. In this position, Bakst studies and writes about agricultural and environmental policy and property rights, among other issues.  He has done extensive work on the farm bill… ...

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