Urgent: FTC Launches High-Stakes Antitrust Inquiry into Deere, Unveiling Consumer Protection Concerns
The U.S. Federal Trade Commission (FTC) is investigating farm equipment manufacturer Deere & Co. over its repair policies, as revealed in a recent filing. The probe, initiated on September 2, 2021, scrutinizes the restrictions Deere places on repairing its hardware or software. These practices are often seen by regulators as limiting customers’ “right to repair” the products they own.
The investigation came to light through a filing by data analytics firm Hargrove & Associates Inc., which challenged an FTC subpoena for market data from the Association of Equipment Manufacturers. Notably, neither Hargrove nor the Association is the target of the investigation.
While the FTC has not commented, and Deere has yet to respond, the focus centers on potential violations of Section 5 of the Federal Trade Act, which prohibits unfair or deceptive practices in commerce. This section has previously been used in cases against major companies like Amazon and pharmacy benefit managers. Deere is already facing lawsuits from U.S. farmers, who allege that its repair policies break antitrust laws.
In response to ongoing criticisms, Deere signed a memorandum with the American Farm Bureau Federation, allowing farmers to repair their equipment themselves or use third-party services. Meanwhile, Colorado enacted a right to repair law last year. Although federal right to repair legislation hasn’t passed, the Clean Air Act mandates manufacturers to inform users that third-party repairs are permissible.
This investigation highlights the growing tension in the agricultural sector over repair rights, with potential implications for consumer rights and competition within the industry.
Original Story https://www.cnbc.com/2024/10/17/ftc-probing-deere-in-antitrust-consumer-protection-inquiry-filing-shows.html
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