Says state has failed to enforce the consumer law

TRENTON – Senate President Steve Sweeney today gave his support to the lawsuit filed by automotive retailers alleging a number of state agencies are failing to enforce the consumer law putting restraints on the sale of electric cars from non-dealer facilities.

The legal action by the New Jersey Coalition of Automotive Retailers claims that the Motor Vehicle Commission, the Attorney General’s Office and the Division of Consumer Affairs have all allowed Tesla to circumvent the 2015 law limiting sales to four locations. It also alleges a variety of anti-consumer practices.

“We put in place a law that gave Tesla some modest flexibility to sell their vehicles at the same time it respects the rights of competing car dealers,” said Senator Sweeney (D-Gloucester/Salem/Cumberland). “The state agencies responsible for enforcing the law have failed to live up to their responsibilities. This is unfair to franchised dealers and consumers. These dealers are important to the state’s economy and the economic vitality of their communities.””

Tesla uses what it calls “galleries” to market its vehicles to consumers, bypassing the long standing legal requirement that all new cars be sold by franchised dealers. The validity of the 2015 law granting them limited dispensation is based on enforcement, Senator Sweeney said.