FTC Strikes Settlement With John Deere On ‘Right To Repair’

from the fix-your-own-shit dept

To be clear, the FTC under Donald Trump and new boss Andrew Ferguson has been a dangerous embarrassment. Whether it’s the firing of both Democratic Commissioners, the politically motivated investigations, the extremist attacks on trans people, the agency’s useless attacks on porn, or its efforts to undermine free speech, the Trump FTC has largely been a hot and painful mess that looks nothing like the “extension of Lina Khan’s antitrust legacy” promised by Republicans last election season.

That said: stopped clocks and all that.

The agency appears to have actually done something useful in striking a new settlement with agricultural giant John Deere to address the company’s longstanding “right to repair” abuses. According to an FTC announcement, the settlement to the joint lawsuit brought by the FTC and five states requires that the FTC spend at least ten years trying to make repairing its tractors easier:

“The FTC’s settlement requires Deere—for the next 10 years and under the supervision of the FTC and plaintiff states—to provide farmers and independent repair providers with the same equipment repair resources, including applicable software capabilities, that it currently provides to authorized Deere dealers.”

As is often the case, whether this actually sees any meaningful enforcement will remain an open question. But right to repair advocates like U.S. PIRG’s Nathan Proctor say the settlement is a meaningful one, and a step up to the agreement John Deere made when recently settling a different right to repair class action lawsuit for $99 million.

“The agreement between Deere and the FTC is much better than the deal secured in a similar class action lawsuit,” Proctor said. “For example, it protects independent mechanics from anti-competitive practices in the repair marketplace.”

As we’ve covered for years, John Deere went out of its way to acquire smaller, independent repair centers to force users to use more expensive John Deere dealership repairs. Then it went out of its way to make tools, manuals, and parts as difficult as possible to get. In short they worked tirelessly, for years, to create a monopoly on repair — dramatically driving up costs for consumers.

John Deere’s behaviors had one positive net benefit: they directly sparked a nationwide and bipartisan right to repair reform movement that sparked Massachusetts, New York, Texas, Minnesota, Colorado, California, Oregon, and Washington to pass state level right to repair laws. All 50 states have considered such laws, and several (like Maine and Ohio) have gotten close in recent years.

More recently, John Deere had been striking meaningless “memorandums of understanding” with key trade groups, pinky swearing to stop their bad behavior if the groups agreed to not support state or federal right to repair legislation. Several such groups backed off their criticism, only to have John Deere continue its monopolistic behavior, the FTC’s original complaint noted.

It’s worth reiterating that since passage not a single state has actually enforced the laws despise no shortage of offenders, so a lot of work needs to be done on the enforcement front. And again, a settlement with the FTC is also only as good as enforcement; not exactly the Trump administration or U.S. government’s strong suit when it comes to standing up to consolidated corporate power.

Filed Under: antitrust, ftc, hardware, independent repair, monopoly, right to repair, tractors

Companies: john deere