For years, John Deere has made it difficult for farmers to repair equipment. Today, the Federal Trade Commission announced that it will sue to try to stop them. The FTC and the state attorneys general of Illinois and Minnesota are John Deere is suing due to unfair business practices in connection with the repair.
According to the complaint, Deere unlawfully restricted farmers from repairing their own farm equipment. Under the program, farmers had to return tractors to authorized John Deere dealers for official repairs.
“Illegal fix restrictions can be devastating to farmers, who rely on affordable and timely fixes to grow their crops and earn their income,” FTC Chair Lina Khan it is stated in the press release about the lawsuit. “Today’s action by the FTC seeks to ensure that farmers across America are free to repair their equipment or use the repair shops of their choice—by reducing costs, preventing devastating delays, and promoting fair competition for independent repair shops.”
Legal action has been initiated against John Deere cook for years. Last fall, the FTC announced that it had begun investigation in the company over their repair practices. It has passed sued several times farmers champion the issue and have long promised to make it easier to repair their machines. It was lying.
The basic scheme is this: the newer machines manufactured by John Deere contain advanced computer systems that break down when any work is being done. Even if a farmer performs basic repairs on the tractor, the computers lock the tractor out of operation again until an authorized service technician flips a software switch.
Farmers have long sought one thing: access to manuals and tools that would allow them to repair their own equipment in a timely manner. “Through its limited distribution of its repair tools, Deere has been able to control and limit who can repair its farm equipment, allowing Deere to maintain 100% market share and charge higher prices, through its network of authorized dealers, for all repairs that require a fully functional tool .” the FTC said.
This increased the cost of repairs to basic agricultural equipment, delayed the harvest and caused an explosion in agricultural equipment on the market because farmers want to buy machines made before John Deere loaded them with computers. The lawsuit aims to force Deere to give farmers access to the same tools as authorized repair shops, allowing them to fix their own stuff.
News of the lawsuit was met with general approval from multiple groups that have lobbied to get John Deere to make things easier to repair.
“Everyone, especially handy people, including farmers, should be allowed to fix their own things. When farmers can’t access the proprietary software tools they need to diagnose or complete repairs, it means they have to wait for a certified technician before they can complete their work. Time does not wait for the agent’s schedule—a delay can mean a loss of harvest. Not only could this bankrupt the farmer, but it also raises food prices for everyone,” Nathan Proctor, director of PIRG’s Right to Repair campaign, said in a statement.
“We should not tolerate companies blocking the fix. When you buy something, you should be able to do whatever you want with it,” added Proctor. “FTC enforcement will help farmers and anyone else who believes people should be able to fix their stuff.”
The FTC’s lawsuit joins a long list of aggressive actions the Commission has taken against corporate malfeasance under Khan. Right to repair has been a key issue in the Biden White House and, through executive orders and FTC lawsuits, DC has been able to win several victories for consumers.