July 22, 2021

MEP EP#286: FTC “Nixing The Fix” Report

1 hour 21 minutes

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

...more

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By MacroFab, Inc.

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