Deere & Company unfairly forces farmers to visit authorized dealers to repair their equipment, resulting in higher prices than if they repaired it themselves or with the help of an independent shop. The Federal Trade Commission alleges in a federal lawsuit filed Wednesday with the attorney general. Illinois and Minnesota.
The Moline, Illinois-based manufacturer makes repair software available only to dealers, giving owners the option of cheaper remedies, according to the lawsuit filed in U.S. District Court in Rockford, Illinois. It has become impossible to ask for it.
The action comes as the FTC ramps up enforcement actions in the final days of President Joe Biden’s administration. Deere & Company said in a statement that the lawsuit is based on “clear misrepresentations of fact and a fatally flawed legal theory.”
FTC Chairman Lina M. Khan said in a prepared statement that the complaint alleges “unfair management practices” boosted Deere’s billions of dollars in profits on farm equipment and parts while “depriving it of affordable prices.” They argue that this places a burden on practitioners who rely on timely repairs.
Khan said farmers are “free to repair their own equipment or use a repair shop of their choice to reduce costs, prevent catastrophic delays and promote fair competition.” said it should.
For decades, farmers have been able to repair their tractors and combines themselves or take them to a local repair shop. According to the FTC, as computerization has increased over the past few decades, industry powerhouse Deere has made its high-tech repair tools available only to authorized dealers, who have consistently avoided generic parts and expensive parts. The company reportedly purchases parts from Deere.
The company refuses to share the information needed to build its own tools with independent software developers, which is common in the auto and trucking industries, according to the FTC.
Related article | Coors Light is rebranding for ‘Case of the Mondays’ after Super Bowl
Illinois Attorney General Kwame Raoul and Minnesota Attorney General Keith Ellison, both Democrats, joined the lawsuit.
“Deere has made it virtually impossible for farmers themselves or independent repair shops to fully repair Deere equipment. As a result, farmers are forced to rely on authorized Deere dealers. Dealers are more expensive, time-consuming, and sometimes far from the farm,” Ellison said. said in a statement.
Deere & Company claims the FTC ignores the company’s “long-standing commitment to customer self-repair” and announced this week additions to its “series of digital solutions” that allow customers to repair their own vehicles. did.
Deere Vice President Denver Caldwell said in a statement that the company was actively involved in settlement negotiations with the FTC and was still responding to the commission’s questions at the time of the lawsuit.
Caldwell said these discussions revealed that the agency “continues to lack basic information about the industry and John Deere’s business practices, and relies on inaccurate information and assumptions.” This has been confirmed.”
Public pressure for self-repair is increasing. Colorado’s 2023 “Right to Repair” law requires manufacturers to provide manuals, software, tools and parts to farmers who want to get their tractors running again themselves.
Related article | Capital One bank sued by US watchdog for defrauding customers of $2 billion
A similar law in Minnesota exempted farm equipment that same year. The Minnesota Farmers Union has been pressuring lawmakers to remove the exception, said union president Gary Wertish.
The lawsuit, approved by the FTC on a 3-2 vote, will issue refunds to consumers, take enforcement action against companies accused of deceitful practices, and finalize rules deemed necessary to make markets fairer. It is suitable for a series of activities such as. President-elect Donald Trump’s inauguration ceremony on Monday.
President Trump has nominated Andrew Ferguson, one of the FTC’s five commissioners, to be the next chairman of the FTC. Ferguson, who joined Commissioner Melissa Holyoake in opposing the Deere lawsuit, said it “reeks of partisan motivation” and was “taken in a hurry to overthrow President Trump and put him in office.” I cast my vote.
