Legislative panel to study issue of Internet car sales

by Karen E. Culp

SBJ Staff

A joint legislative panel will study issues involving automobile dealers and manufacturers.

The committee is charged with determining whether any changes are needed in Missouri law regarding regulation of the business activities of auto dealers and manufacturers.

Sarah Steelman, a Republican state senator from Rolla assigned to the committee, said she believes the committee will look at how relationships between auto dealers and manufacturers have changed with regard to the Internet.

"It is my understanding that we will be looking at the issues that have emerged as a result of manufacturers possibly using the Internet to bypass the franchisers and sell their products," Steelman said.

The state now has laws that govern other aspects of relationships between dealers and manufacturers, but the Internet has created a whole new set of possibilities, Steelman added.

Lynn Thompson, president of Thompson Pontiac GMC Cadillac, said, "We don't yet know what the factory will do with regard to selling cars on the Internet, but we want to be pro-active and make sure our interests are protected."

Thompson's company has its own Web site,

www.thompsonsales.com,

which sells cars over the Internet. Thompson said he does not want regulations placed on Internet sales necessarily, but feels the manufacturers should be monitored.

"We'll see how things go. We have a business relationship with the manufacturers and we are required by them to follow certain procedures, so we have a real concern about competing with them in the sales arena," Thompson said.

The 14-member committee will convene and prepare a report for submission to the General Assembly before its regular session starts Jan. 5, 2000.

It will likely hold meetings around the state to gather testimony on the issues before reporting to the assembly.