FTC Sues Deere Over Alleged Unfair Repair Practices

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FTC Sues Deere Over Alleged Unfair Repair Practices
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The Federal Trade Commission (FTC) has filed a lawsuit against agricultural equipment giant Deere & Company, accusing the company of using unfair repair practices to restrict farmers' ability to repair their own equipment. The lawsuit centers around Deere's Service ADVISOR software repair tool, which is only accessible to authorized repair shops.

The Federal Trade Commission ( FTC ) has filed a lawsuit against Deere & Company, a major agricultural equipment manufacturer, alleging that the company has engaged in unfair repair practices for decades. The FTC claims that Deere 's actions have limited the ability of farmers and independent repair providers to repair Deere equipment, forcing them to rely on Deere 's network of authorized dealers for necessary repairs.

This, the FTC argues, has resulted in higher repair costs for farmers while boosting Deere's multi-billion-dollar profits on agricultural equipment and parts. \The lawsuit focuses on Deere's software repair tool, known as Service ADVISOR, which is required to make certain repairs. The tool is only available to authorized repair shops, giving Deere control over who can repair its equipment. As farming equipment becomes more computerized, repairs have become increasingly intricate, requiring specialist knowledge and tools. The FTC contends that this has led to higher and more complex repair costs for users, benefiting Deere financially. \Deere, however, maintains that it is expanding self-repair options for customers and that the FTC is uninformed about the agricultural equipment industry. Denver Caldwell, vice president of aftermarket and customer support, stated that discussions with the Commission revealed a lack of basic information about the industry and John Deere's business practices, claiming the agency relied on inaccurate information and assumptions. This lawsuit is the latest development in an ongoing dispute between Deere, farmers, and legislators. A 2017 Vice documentary highlighted Nebraska farmers resorting to using pirated software from Eastern Europe to circumvent software locks on hardware. \Last March, Oregon Governor Tina Kotek signed a bill requiring companies to make tools, documents, and parts openly accessible, not restricting them to authorized repair shops. This legislation went further than California's similar repair laws by being the first to ban parts pairing. It achieved this by eliminating the requirement for parts to be verified by a calibration tool previously accessible only to Apple and authorized repair shops. While Apple eventually yielded to legislative pressure, Deere & Company may have a lifeline through incoming President Trump's nominee for FTC chair and current FTC commissioner, Andrew Ferguson. Ferguson voted against suing Deere. In his dissenting statement, he criticized the timing of the filing, suggesting it was motivated by partisan concerns and questioning the strength of the evidence. Ferguson argued against expending taxpayer resources on lawsuits based on such an underdeveloped record

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