- Rivian is suing Ohio to overturn a ban that stops it from selling vehicles directly within the state.
- The law allows Rivian to service, rent, and deliver cars in Ohio, but not complete a sale there.
- A win could set precedent, as Rivian joins Tesla, Lucid, and Scout in challenging direct-sales bans.
Car dealers in the United States have long resisted the rise of direct-to-consumer car sales, and that resistance is alive and well in Ohio. At the center of the latest challenge is Rivian, which currently isn’t allowed to sell its vehicles directly to buyers in the state. Now, a new lawsuit could change that, potentially breaking the ban and setting a broader legal precedent.
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Rivian can sell vehicles to people who live in Ohio, but they can’t do it from within the state. Interested buyers have to purchase the car from a Rivian location outside of the state. Somewhat comically, selling within the state to a buyer is basically the only thing the brand isn’t already allowed to do.
Legal Challenge Takes Aim at Ohio’s Restrictions
The lawsuit, filed against the Ohio Bureau of Motor Vehicles, calls the current setup nonsensical. “Ohio allows manufacturers like Rivian to perform warranty service and other repairs on vehicles in Ohio, to rent vehicles to consumers, and even to sell new vehicles to Ohioans from out-of-state dealerships, which can be delivered to Rivian service centers inside the state’s borders,” the filing notes.
“But when it comes to actually completing a sale within Ohio, that’s off-limits. This imposes an extraordinary burden on consumers and Rivian for no legitimate reason,” the lawsuit adds.
Of course, none of this is surprising. The National Automobile Dealers Association (NADA), lobbies hard every year to keep brands like Rivian, Tesla, and Lucid from having the ability to sell directly to consumers.
Rivian’s Argument: It’s About Choice and Competition
“Rivian believes that consumers should be able to choose the vehicles they purchase,” Mike Callahan, chief administrative officer, said in a statement. “Consumer choice is a bedrock principle of America’s economy. Ohio’s archaic prohibition against the direct sales of vehicles is unconstitutional, irrational, and harms Ohioans by reducing competition and choice and driving up costs and inconvenience.”
If Callahan and Rivian get their way, it’ll likely set further precedent.
The automaker won a legal fight in Illinois back in 2021 and maintained that victory despite a challenge from the state’s dealer association, says TechCrunch. Lucid, Tesla, and even Scout Motors are all working to open up the bans on direct sales in various states across the USA. Notably, Tesla reached a deal with the Ohio BMV, allowing it to sell within the state already. Perhaps Rivian will do the same.
