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Heated debate in committee over bill to block manufacturers from selling through affiliates; dealers warn of lost investment, new manufacturers say it would stfl
Summary
The Business Affairs & Labor Committee heard opposing testimony on SB 160, a bill that would prevent manufacturers from using affiliates to sell direct to consumers where the manufacturer already distributes through franchise dealers.
The Business Affairs & Labor Committee heard extended, sometimes impassioned testimony on SB 160, which would clarify that—where manufacturers already sell through franchise dealers—related affiliates cannot be used to circumvent franchise rules and sell directly to consumers.
Supporters, primarily franchise dealers and dealer associations, argued the bill closes a loophole that would allow established manufacturers to create or acquire affiliated brands or subsidiaries that could sell direct‑to‑consumer (DTC) in Colorado while the parent manufacturer continues to supply franchise dealers. Dealers described heavy local investments—real estate, training, equipment and staffing—made in reliance on existing franchise…
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