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Rivian Sues Ohio to Overturn Ban on Direct-to-Consumer EV Sales

Rivian says Ohio’s 2014 franchise law irrationally protects dealer profits by barring its direct-to-consumer model.

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Rivian R1T vehicle
Rivian Has Had It With Ohio's Approach To Direct Sales: Sales

Overview

  • On August 4, Rivian filed a federal lawsuit in the U.S. Southern District of Ohio against the state DMV to challenge a 2014 law banning manufacturer-owned retail licenses.
  • The complaint labels the ban “irrational in the extreme,” arguing it suppresses competition, limits consumer choice and drives up costs.
  • Ohio’s statute grants Tesla an exclusive carve-out to operate direct showrooms while preventing Rivian and other automakers from securing similar licenses.
  • Under the ban, Rivian may service, rent and deliver vehicles in Ohio but must complete sales transactions out-of-state.
  • Rivian is asking the court to allow it to apply for a dealership license, marking its first state-level challenge with potential to reshape EV direct-sales laws.