FTC sues John Deere over farmers' right to repair tractors: NPR

John Deere is accused in a lawsuit filed by the Federal Trade Commission and two states of illegally restricting farmers' ability to repair tractors and other equipment. Seth Perlman/AP hide title

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Seth Perlman/AP

Tractor maker John Deere faces a federal lawsuit accusing the company of illegally forcing farmers to use only authorized dealers for critical repairs, thereby increasing billions of dollars in profits.

The lawsuit, filed Wednesday by the Federal Trade Commission along with Illinois and Minnesota, escalates a long-running battle over farmers' rights to repair their own farm equipment and parts.

As tractors and combines become increasingly computerized, farmers complain that Deere limits access to its software, making it difficult or nearly impossible for owners to diagnose and fix problems themselves or with the help of independent mechanics. Instead, farmers must use authorized dealers, who tend to charge more and may take longer.

The lawsuit accuses Deere of denying access to its technology and best repair tools and maintaining monopoly power over many repairs. Deere also made additional profits from selling parts because authorized dealers tended to sell expensive Deere-branded parts for repairs rather than generic alternatives, the complaint alleges.

"Unfair repair restrictions can mean farmers face unnecessary delays during tight planting and harvest windows," FTC Chairwoman Lena Khan wrote in a statement. "In rural communities, these restrictions sometimes mean With farmers needing to drive several hours to repair their equipment, these artificial constraints seem particularly inefficient for those who have long been working on their own equipment, leaving tractors unnecessarily idle as farmers and independent mechanics cannot perform their duties. skills and talents.”

It's unclear how the case will proceed once Republicans take control of the FTC after Donald Trump takes office on Monday. The agency's two Republican commissioners voted against prosecuting Deere. One of them, Andrew Ferguson, was chosen by Trump to be the new chairman of the Federal Trade Commission.

In their statements of dissent, Commissioners Ferguson and Melissa Holyoak wrote that they welcomed the FTC "taking up farmers' causes," but raised procedural arguments against the lawsuit. They said the timing, just before Trump's inauguration, gave the case the "stench of partisan motivations."

They also wrote that the FTC had not gathered enough evidence to have "any real confidence in our chances of ultimate success" in the lawsuit and said the agency was also in active settlement talks with Deere.

Representatives for Deere did not immediately respond to NPR's request for comment Wednesday. Earlier this week, the company said it was expanding options for farmers to repair their own equipment in a pilot program.

The FTC has previously filed similar right-to-repair cases against motorcycle giant Harley-Davidson and grill maker Webber.