MEP EP#286: FTC “Nixing The Fix” Report
FTC “Nixing The Fix” Report
The debate around repair restrictions illustrates the limitations of MMWA’s anti-tying provision in repair markets. While the anti-tying provision gives consumers the right to make repairs on their own or through an independent repair shop without voiding a product’s warranty, repair restrictions have made it difficult for consumers to exercise this right. Although manufacturers have offered numerous explanations for their repair restrictions, the majority are not supported by the record.
How manufacturers may limit repairs by consumers and repair shops, and how those limitations may increase costs, limit choice, and impact consumers’ rights under the Magnuson-Moss Warranty Act
The statute is remedial and is intended to protect consumers from deceptive warranty practices
Consumer products are not required to have warranties, but if one is given, it must comply with the Magnuson-Moss Act.
Defines definitions and disclosure standards
Bars manufacturers from using access to warranty coverage as a way of obstructing consumers’ ability to have their consumer products maintained or repaired using third-party replacement parts and independent repair shops.
A manufacturer with market power that has refused to provide consumers or aftermarket service providers with key inputs (such as parts, manuals, or diagnostic software and tools) may be subject to antitrust liability for maintaining its monopoly, if the effect of such conduct is to harm competition
What is market power?
Repair Restrictions
Physical
iFixit has a repair index for devices
Should manufacturers disclose how “repairable” the device is?
Reports indicate that consumers would rather have a long lasting device over a “sexy” device.
Restrictions on parts, repair manuals, software, tools
Designs making repair unsafe
manufacturers provided no data to support their argument that injuries are tied to repairs performed by consumers or independent repair shops.
Telematics
Quality of Service of the Repair Process
Dealerships suck in terms of service
Mainly covers safety and “proper repairs"
Right to Repair advocates state that OEMs do this to themselves by not providing proper documentation on repair practices
Application of patent rights / Trademarks
Disparagement of non-OEM parts
Software locks
EULAs
Liability and Reputational Harm
Talking points for right to repair
Timing of Repairs
Price of repairs
Environmental Harm
Small Businesses and Employment
What can the FTC actually do?
Revise its Interpretations of the MMWA to
Make clear that certain repair restrictions could violate the MMWA
Is this like the ATF “reinterpreting the laws”?
Self-regulation
Transparency of Repairability by OEMs/Industry