Federal Trade Commission fines Harley-Davidson for violating new 'right to repair' law

Consumers now have more choices when it comes to repairing everything from their cellphones to farming equipment.

Recently passed "right to repair" legislation gives people freedom to use independent repair shops or their own knowledge to fix items without invalidating the manufacturer's warranty.

Kyle Wiens, CEO of the San Luis Obispo, California, online repair community iFixit, said people have had the right to repair their own items for years, but until recently, the Federal Trade Commission has generally not made enforcement a priority.

Wiens claims companies like Harley-Davidson, Apple and Microsoft monopolize the supply chain by designing products that prevent users from being able to easily repair them.

He has been on both sides of the issue. Wiens grew up in Oregon, where his dad ran a Harley-Davidson dealership.

"I saw how controlling Harley-Davidson was, with every aspect of the experience, including what accessories we could sell," Wiens said. "I feel like once you buy something, it's yours. If you want after-market tires, that's OK."

Harley-Davidson did not respond to several interview requests from the Milwaukee Journal Sentinel.

FTC takes action against Harley-Davidson

In an expansive executive order promoting competition in the American economy released on July 9, 2021, President Joe Biden encouraged the FTC to issue rules against "anticompetitive restrictions on using independent repair shops or doing DIY repairs of your own devices and equipment."

That same year, the agency hosted a "Nixing the Fix" workshop, seeking input from consumers, independent businesses and manufacturers. During the process, the FTC uncovered evidence that manufacturers and sellers were restricting competition for repair services in numerous ways, according to an FTC report.

The FTC voted unanimously in July 2021 to ramp up law enforcement against illegal repair restrictions.

It issued its first fines last month against Harley-Davidson and Westinghouse outdoor generator maker MWE Investments LLC.

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According to the FTC’s complaints, both companies were imposing illegal warranty terms that voided customers’ warranties if they used anyone other than the companies and their authorized dealers to get parts or repairs for their products.

The FTC also alleged that Harley-Davidson failed to fully disclose all the terms of its warranty in a single document, requiring consumers to contact an authorized dealership for full details.

Harley will be fined $46,517 per violation. The company would not comment on the fine.

"Consumers deserve choices when it comes to repairing their products, and independent dealers deserve a chance to compete,” Samuel Levine, director of the FTC’s Bureau of Consumer Protection wrote in a release.

“These orders require Harley and Westinghouse to fix their warranties, come clean with consumers, and ensure fair competition with independent providers. Other companies that squelch consumers’ right to repair should take notice.”

Rural Wisconsin also benefits

Westby dairy farmer Darin Von Ruden bought a tractor about seven years ago with an advanced computer sensor system.

When it needed to be repaired, he took it to the local John Deere dealership that charged $120 an hour.

Von Ruden, who operates the Darin and JoAnn Von Ruden Family Farm located about 35 miles southeast of La Crosse, said he would have preferred to go to an independent repair shop that changes about $30 an hour, but he knew it would have violated the terms of the warranty.

Von Ruden thinks the new legislation will help rural Wisconsin in two ways: farmers will have less costly options to repair their equipment and more independent shops will open.

"Major manufactures have cornered the market on being able to repair these things," Von Ruden said. "Let's say a farmer or an ex-farmer wants to get into the repair business, if they don't want to work for John Deere, it's hard to get a job."

John Deere said in a statement to Successful Farming magazine it supports a customer’s right to “safely maintain, diagnose and repair” equipment and provides the tools, parts and information for farmers to work on machines.

But the company does not support the right to modify equipment software, citing safety risks, emission compliance and engine performance.

Corrinne Hess can be reached at chess@gannett.com. Follow her @corrihess

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This article originally appeared on Milwaukee Journal Sentinel: Harley-Davidson fined for violating consumer repair choices law

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