Building on its own work in 2019 and a recently issued presidential executive order, the Federal Trade Commission (FTC) issued a policy statement addressing the right to repair issue.
The FTC said the statement was aimed at manufacturers’ practices that make it extremely difficult for purchasers to repair their products or shop around for other service providers to do it for them.
“By enforcing against restrictions that violate antitrust or consumer protection laws, the commission is taking important steps to restore the right to repair,” the FTC stated.
The FTC and administration’s right to repair target generally has been consumer product manufacturers and agriculture manufacturers. Yet RVIA Vice President of Government Affairs Jay Landers said the issue could sweep up the RV industry, depending on how enforcement and regulation moved forward.
“What we have found and seen traditionally over the years is the RV industry is rarely, if ever, the actual target of legislation or regulatory issues,” he said. “We get swept up in automotive, bus, even housing issues. In the case of the FTC initiative here, they are focusing on more mainstream consumer products like cell phones and battery replacements, or farmers who have to fix tractors and cannot take them to the nearest dealership 100 miles away.”
Among the areas the FTC addressed was the limited scope of civil penalties that can be issued to potential violators. However, the one case in which the FTC brought a right to repair complaint was against automaker BMW.
“We have to react because once the process starts, we might get swept up in that,” Landers said. “That is where we have to go to work. We either can work on getting a carve-out or exception for the industry or all our companies will need to take heed and understand the nuance of the legislation or regulation they might need to follow.”
The FTC’s policy statement notes restrictions on repairs of devices, equipment and other products increased the burden on consumers and businesses. In addition, manufacturers and sellers may be restricting repair competition in numerous ways that might violate the law.
“These types of restrictions can significantly raise costs for consumers, stifle innovation, close off business opportunity for independent repair shops, create unnecessary electronic waste, delay timely repairs, and undermine resiliency,” FTC Chairwoman Lina Khan said. “The FTC has a range of tools it can use to root out unlawful repair restrictions, and today’s policy statement would commit us to move forward on this issue with new vigor.”
The statement said unlawful repair restrictions generally have not been an FTC enforcement priority in the past. However, the agency determined it will devote more enforcement resources to combat the practices.
“Accordingly, the commission will now prioritize investigations into unlawful repair restrictions under relevant statutes such as the Magnuson-Moss Warranty Act and Section 5 of the Federal Trade Commission Act,” the statement said.
The statement begins by urging complaints and information to be submitted regarding potential Magnuson-Moss Warranty Act violations.
“While current law does not provide for civil penalties or redress, the commission will consider filing suit against violators of the Magnuson-Moss Warranty Act to seek appropriate injunctive relief,” the statement said. “The commission will also closely monitor private litigation to determine whether the commission may wish to investigate a pattern of unfair or deceptive acts or practices or file an amicus brief. Further, the commission will explore rulemaking, as appropriate.”
The statement said the FTC would consider antitrust violations related to the issue as well as its authority to enforce against unfair and deceptive acts and practices under Section 5.
“Finally, the commission will bring an interdisciplinary approach to this issue, using resources and expertise from throughout the agency to combat unlawful repair restrictions,” the statement said. “The FTC will also closely coordinate with state law enforcement and policymakers to ensure compliance and to update existing law and regulation to advance the goal of open repair markets.”
