The Federal Trade Commission and the attorneys general of Illinois and Minnesota announced a lawsuit against farm equipment manufacturer John Deere, alleging practices that increase farmers' equipment repair costs and deprive them of the ability to timely repair critical farm equipment.
The FTC complaint alleges that for decades, Deere’s conduct limited the ability of farmers and independent repair providers to repair Deere equipment, forcing them to rely on Deere’s network of authorized dealers to make necessary repairs. That added billions to Deere's profits on farm equipment and parts, expanded its repair parts business, and burdened farmers with higher repair costs, according to the FTC.
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“Unlawful maintenance restrictions can be devastating to farmers, who rely on affordable, timely repairs to harvest their crops and earn income,” said FTC Chairman Lina M. Khan . “Today’s action by the Federal Trade Commission aims to ensure that farmers across America are free to repair their own equipment or use the repair shop of their choice, reducing costs, preventing devastating delays and promoting fair competition among independent repair shops.”
Historically, farmers have sought to repair their own equipment or relied on local independent repair providers. However, as Deere equipment has become increasingly computerized over the past few decades, farmers must now rely on Deere's interactive software tool called Service ADVISOR, which is available only to its authorized dealers, the FTC complaint alleges. .
An alternative repair tool, Customer Service Advisor, exists, but it is reportedly unable to perform all repairs on Deere agricultural equipment. Deere also allegedly failed to make Information needed to develop a fully functional repair tool Available to developers of general repair tools.
The lawsuit seeks to require Deere to grant Large tractor and combine harvester owners and independent repair providers, Access their Service Advisor repair tools and any other repair resources available to authorized dealers.
Deere said in response that the FTC and state attorneys general were suing based on "a blatant misrepresentation of the facts and a fatally flawed legal theory."
"Our recent discussions with the committee indicate that the agency continues to lack basic information about the industry and John Deere's business practices and confirm that the agency is relying on inaccurate information and assumptions," Deere Vice President After Sales and Customer Support Denver Caldwell said.
Deere said the FTC filed the lawsuit while it was in active negotiations with the company about a potential settlement. The company added that it plans to introduce a new self-healing feature that will allow customers and independent repair technicians to reprogram electronic controllers manufactured by Deere.
Deere expects to launch the pilot program in Canada and the United States later this year.
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