FTC Sues John Deere: Unfair Tactics Drive Up Repair Costs for Farmers

The Federal Trade Commission (FTC) has filed a lawsuit against agricultural equipment manufacturer John Deere & Company, alleging that the company's unfair repair practices have driven up equipment repair costs for farmers while depriving them of the ability to make timely repairs on critical farming equipment. The lawsuit, filed in conjunction with the Illinois and Minnesota Attorneys General, seeks to stop Deere's anticompetitive conduct and promote fair competition for independent repair shops.

According to the FTC's complaint, Deere has unlawfully acquired and maintained monopoly power in the market for certain repair services for its agricultural equipment by limiting access to its fully functional repair tool, Service ADVISOR, to its authorized dealers. This restriction forces farmers to rely on more expensive authorized dealers for critical repairs, driving up repair costs and delaying repairs. Deere's practices also allow it to reap additional profits through parts sales, as its authorized network of dealers almost always use expensive Deere-branded parts in their repairs.

The FTC's lawsuit seeks to stop Deere's anticompetitive conduct by ordering, among other remedies, that Deere make available to owners of Deere large tractors and combines, as well as independent repair providers, access to its fully functional Service ADVISOR repair tool and any other repair resources available to authorized dealers. The Commission voted 3-2 to authorize staff to file for a permanent injunction and other equitable relief in the U.S. District Court for the Northern District of Illinois, with Commissioners Melissa Holyoak and Andrew Ferguson dissenting.

Deere & Company has responded to the lawsuit, stating that it will defend itself against the "baseless" lawsuit and that the complaint is "based on flagrant misrepresentations of the facts and fatally flawed legal theories, and it punishes innovation and procompetitive product design." The company maintains that it supports customers' right to repair equipment and has been actively negotiating with the FTC over a potential settlement before the lawsuit was filed.

The FTC's lawsuit highlights the ongoing battle between farmers and manufacturers over the right to repair agricultural equipment and parts. As tractors and combines have become more computerized, farmers have complained that Deere has restricted access to its software and made it difficult, or nearly impossible, for owners to diagnose and fix problems themselves or with the help of independent mechanics. The lawsuit alleges that Deere's practices have driven up repair costs and delayed repairs, impacting farmers' ability to maintain productivity and profitability.

In conclusion, the FTC's lawsuit against John Deere & Company seeks to address the company's unfair repair practices, which have driven up repair costs and deprived farmers of the ability to make timely repairs on critical farming equipment. The lawsuit aims to promote fair competition for independent repair shops and ensure that farmers have access to the tools and resources necessary to repair their own equipment. The outcome of the lawsuit will have significant implications for the agricultural industry and the right to repair agricultural equipment and parts.