John Deere is accused of illegally restricting farmers’ ability to repair their tractors and other equipment in a lawsuit filed by the Federal Trade Commission and two states.
Seth Perlman/AP
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Seth Perlman/AP
Tractor maker John Deere faces a federal lawsuit that accuses the company of illegally forcing farmers to use authorized dealers only for critical repairs, boosting its profits by billions of dollars.
The lawsuit — filed Wednesday by the Federal Trade Commission along with Illinois and Minnesota — escalates a long-running battle over farmers’ rights to repair their own farm equipment and parts.
As tractors and combines became more computerized, farmers complained that Deere limited access to its software and made it difficult, if not nearly impossible, for owners to diagnose and fix problems themselves. themselves or with the help of independent mechanics. Instead, farmers must use authorized dealers, who tend to charge more and can take longer.
The lawsuit accuses Deere of denying access to its technology and best repair tools and maintaining monopoly power over many repairs. Deere also makes additional profits from selling parts, the complaint states, because authorized dealers tend to sell expensive Deere-branded parts for their repairs rather than generic alternatives.
“Unfair relief restrictions can mean farmers face unnecessary delays during tight planting and harvest windows,” FTC Chair Lina Khan wrote in a statement. “In rural communities, restrictions can sometimes mean farmers have to drive hours just to get their equipment repaired. For those who have long repaired their own equipment, these artificial restrictions can seem particularly ineffective, with tractors needlessly idled as farmers and self-employed workers. mechanics cannot use their skills and talent.
It’s unclear how the case might play out when Republicans take control of the FTC after Donald Trump becomes president on Monday. The agency’s two Republican commissioners had voted against Deere’s lawsuit; one of them, Andrew Ferguson, is Trump’s pick to become the new FTC chairman.
In their dissenting statement, Commissioners Ferguson and Melissa Holyoak wrote that they were pleased that the FTC was “taking up the farmers’ cause” but made procedural arguments against the lawsuit. They said the timing, just before Trump’s inauguration, gives the case “the odor of partisan motivation.”
They also wrote that the FTC had not gathered enough evidence to have “real confidence in our ultimate chances of success” in the litigation – and said the agency was also in active ongoing negotiations for a settlement with Deere.
Representatives for Deere did not immediately respond to NPR’s request for comment Wednesday. Earlier this week, the company announced it was expanding options for farmers to repair their equipment themselves as part of a pilot program.
The FTC previously filed similar right-to-repair lawsuits against motorcycle giant Harley-Davidson and grill maker Weber.
