Rivian has filed a lawsuit against the Ohio Bureau of Motor Vehicles, challenging a 2014 law that prevents it from selling vehicles directly to customers. Rivian, in its filing on August 4 at the U.S. District Court in Columbus, claims that Ohio’s ban on direct vehicle sales violates the Fourteenth Amendment equal protection rights of Ohio consumers and suppresses competition from emerging competitors by protecting the state’s franchised auto dealerships.
The EV maker contends that the law is outdated and unfairly benefits Tesla, which received a special exemption allowing it to sell vehicles directly to consumers at three locations within the state.
The lawsuit states that the 2014 Ohio law permits the Registrar of Motor Vehicles to reject a dealer license application from a vehicle manufacturer or any related entity, such as its parent company, subsidiary, or affiliate.
“Ohio’s prohibition is pure economic protectionism for the benefit of Ohio’s existing auto dealers, putting their profits ahead of consumers,” Rivian said. The lawsuit represents Rivian’s first direct legal action against a state over its restrictions on direct-to-consumer sales.
The lawsuit asserts that Ohio has no valid reason to prevent residents from buying vehicles through a Rivian-owned dealership within the state. It argues that such restrictions limit competition, reduce consumer options, and increase both costs and inconvenience, ultimately harming consumers without offering any meaningful benefit in return.
Rivian runs service centers in Cleveland, Cincinnati, and Columbus, offering maintenance, deliveries, and vehicle rentals. But due to existing Ohio laws, the company is not permitted to complete vehicle sales within the state. Instead, customers have to buy Rivian vehicles from out-of-state, typically arranging to collect them from nearby service centers.
Rivian is requesting a court order to prevent the state from enforcing its ban on direct vehicle sales against the company. If the court rules in its favor, Rivian said it will work with Ohio and follow the required procedures to obtain a dealer license.
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