WASHINGTON, D.C. -

Along with sharing an update on the possibility of a Tesla dealership in Virginia, the National Automobile Dealers Association cheered the recent decision by the Federal Trade Commission regarding labels for new alternative-fueled vehicles.

NADA officials highlighted that effective May 31, the FTC will no longer require a special label for new alternative-fueled vehicles (AFVs).

“NADA Regulatory Affairs had strongly advocated for this change, arguing that alternative-fuel information on the FTC label duplicated that found on EPA's revised fuel economy label,” the association said.

NADA pointed out the FTC also has eliminated its AFV label mandate for used vehicles, agreeing with NADA that such labels were of limited usefulness for consumers yet imposed undue regulatory burdens on dealerships.

Created in 1995 under the Energy Policy Act of 1992, the rule required labels that provide information such as driving range and fuel type to help consumers comparison shop.

In June of 2011, the FTC began its review of the rule. A year later, the agency proposed changes to the rule and sought public comment.

After weighing the comments it received, the FTC approved the changes to consolidate FTC labels with EPA fuel economy labels for all AFVs and eliminate FTC labeling requirements for used AFVs.

“Since 1992, the FTC has reviewed all its rules and guides on a rotating basis to ensure they are up-to-date, effective, and not overly burdensome,” commission officials said. “The agency relies on input from the public, including consumers, businesses, advocates, industry experts and others, to help it decide whether rules and guides should be updated, left as is, or rescinded."

The commission vote approving the Federal Register notice announcing the final amendments was 4-0.

Initial Decision Regarding Tesla Store in Virginia

In other news, NADA reported that the Commonwealth of Virginia has denied Tesla Motors’ request to own and operate a retail operation in McLean, Va.

Virginia law establishes a general rule prohibiting manufacturer-owned dealerships unless the motor vehicle commissioner determines that there is no dealer available other than the manufacturer in the community to own and operate the franchise, Then, the manufacturer may be able to operate its own dealership.

“Tesla claimed its business model differs from traditional dealerships and dealers would not be profitable,” NADA said.

The Virginia Automobile Dealers Association (VADA) argued that the exception to the statute was not satisfied by Tesla simply claiming it did not want to have dealers.

In a ruling earlier this week after reviewing both arguments, Richard Holcomb, commissioner of the Virginia Department of Motor Vehicles, said he would need further proof to indicate that no dealer independent of Tesla would be available in the community to own and operate a dealership.

Therefore, Holcomb did not authorize Tesla to operate a dealership in Virginia.

“We are pleased with the ruling,” said Don Hall, president and chief executive officer of VADA.

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