Title: Challenging John Deere's Repair Monopoly: Lina Khan's FTC Takes Action
For decades, farmers have been facing challenges when it comes to fixing their John Deere equipment. Today, the Federal Trade Commission (FTC) announced it's taking legal action against John Deere, joining forces with the Attorneys General of Illinois and Minnesota. The FTC is suing John Deere over what it considers to be unfair business practices related to repair.
According to the complaint, John Deere has been restricting farmers from fixing their own equipment. Under this scheme, farmers were required to return their tractors to John Deere-authorized dealerships for official repairs.
FTC Chair Lina Khan addressed the lawsuit in a press release, saying, "Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income. The FTC’s action today seeks to ensure that farmers across America are free to repair their own equipment or use repair shops of their choice—lowering costs, preventing ruinous delays, and promoting fair competition for independent repair shops."
The problem with John Deere's practices has been brewing for years. Last fall, the FTC announced it had begun an investigation into the company's repair practices. John Deere has been sued by farmers and their advocates multiple times over the issue, yet it continued to promise it would make its machines easier to repair. Sadly, it seems that promise went unfulfilled.
The basic scheme is this: John Deere's newer machines contain advanced computer systems that trip when any kind of work is done. Even if a farmer performs a basic repair on a tractor, the computers lock the tractor from working again until an officially licensed repairman flips a software switch.
Farmers have been requesting one thing for a long time: access to the manuals and tools that would allow them to repair their own equipment in a timely fashion. In its complaint, the FTC noted that by limiting the distribution of its repair tools, John Deere has controlled who can repair its agricultural equipment. This allows John Deere to maintain a 100% market share and charge higher prices for repairs through its network of authorized dealers.
As a result, repair costs for basic farm equipment have skyrocketed, harvests have been delayed, and there's been an explosion in the used farm equipment market as farmers buy machines manufactured before John Deere loaded them down with computers. The goal of the lawsuit is to force John Deere to give farmers access to the same tools as the authorized repair shops, thereby making it possible for them to repair their own stuff.
The news of the lawsuit was met with widespread approval from groups that have been lobbying to force John Deere to make its equipment easier to repair. Nathan Proctor, PIRG's Right to Repair Campaign Director, stated, "Everyone, especially handy people including farmers, should be allowed to fix their own stuff. When farmers can’t access the proprietary software tools they need to diagnose or complete repairs, that means they have to wait for an authorized technician before they can finish their work. The weather doesn’t wait on a dealership’s schedule—a delay could mean the loss of a harvest. Not only might that bankrupt the farmer, it also raises food prices for everyone."
Proctor added, "We shouldn’t tolerate companies blocking repair. When you buy something, you should be able to do whatever you want with it. The FTC’s enforcement action will help farmers, and everyone else who believes people should be able to fix their stuff."
The FTC lawsuit is just one of many aggressive actions the Commission has taken against corporate malfeasance under Khan. The Right to Repair was a key issue in the Biden White House, and through executive orders and FTC lawsuits, D.C. has been able to secure several victories for consumers.
The future of farming could see a significant shift with the FTC's lawsuit, as it aims to require John Deere to provide farmers with the same repair tools as authorized dealers. Technology and 'tech' solutions have been a contentious issue, with John Deere's advanced computer systems limiting farmers' ability to repair their equipment, leading to increased costs and delays.