Dear Senator Booher:
Thank you for requesting comments from the Federal Trade Commission (“FTC”) staff1 regarding Senate Bill 268 pending in the Michigan legislature and relating to the sale and servicing of automobiles. This bill would create a limited exception to current provisions of Michigan law that have been interpreted to prohibit automobile manufacturers from selling new motor vehicles to consumers except through independent franchised dealers. In our view, current provisions operate as a special protection for dealers—a protection that is likely harming both competition and consumers. We therefore appreciate this opportunity to provide our views as to the probable impact of the proposed legislation on competition and consumers.