Tesla Sales Rules Must Favor Consumers, Not Dealers: FTC

States looking at challenges to Tesla Motors Inc.’s direct-sales model should put the needs of consumers ahead of auto dealers’ interests, three top staff members of the U.S. Federal Trade Commission said.

As Tesla fights state by state for the right to sell its electric cars to consumers over the Internet without dealers, officials should consider the potential harm of banning challenges to existing industries and sales models, the directors said in a post on the agency’s blog today. The FTC has responsibilities on a national scale to promote business competition and protect consumers.