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ARTICLE · 10 SEPTEMBER 2015

State AGs In The News - September 3rd, 2015

California auto dealers have asked the California DMV to stop Tesla Motors Inc. from offering current Tesla owners a $1000 credit when they successfully refer a new purchaser, with the purchaser also receiving a $1000 discount.

United StatesConsumer Protection

AG Insights

States Seek Strengthened Data Breach Laws

  • In a recent post, Dickstein Shapiro Counsel Aaron Lancaster explains how state legislatures are shaping law and policy to better protect consumers against the growing threat of data breaches.

Antitrust

California DMV Asked to Prevent "Bird-Dogging"

  • California auto dealers have asked the California DMV to stop Tesla Motors Inc. from offering current Tesla owners a $1000 credit when they successfully refer a new purchaser, with the purchaser also receiving a $1000 discount.
  • The dealers argue that the practice, known in the industry as "bird-dogging," violates state law because it provides a financial incentive to a person who is not licensed to sell vehicles. The letter from the California New Car Dealers Association argues that "other licensed dealers would like to offer similar referral fees" but "California law flatly prohibits the practice."

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