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The FTC Investigates John Deere’s Equipment Repair Policies


— October 25, 2024

Farmers have raised concerns that John Deere’s repair policies prevent them from making necessary repairs to their equipment.


The U.S. Federal Trade Commission (FTC) is actively investigating John Deere, a leading agricultural equipment manufacturer, over its repair policies, which have drawn significant attention and debate. This probe, initiated in September 2021, scrutinizes Deere’s repair restrictions on both hardware and software, and the inquiry was disclosed when data analytics company Hargrove & Associates Inc. filed to challenge an FTC subpoena that sought market data from the Association of Equipment Manufacturers (AEM), of which Hargrove is a member. Neither Hargrove nor AEM are targets of the investigation, as indicated in the filing, which specifically names Deere’s repair practices as the subject of concern.

The FTC is examining whether John Deere has breached Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive practices affecting commerce. This law has been applied to a variety of cases involving large corporations, most recently including actions against companies like Amazon and pharmacy benefit managers. The FTC’s interest centers around the extent to which Deere’s practices restrict customers’ “right to repair,” a term used to describe consumer rights to fix and maintain their purchased goods. This right to repair has become a hot-button issue across various industries, as manufacturers often limit access to necessary tools, software, and diagnostic information.

The FTC Investigates John Deere's Equipment Repair Policies
Photo by Mark Stebnicki from Pexels

Farmers have raised concerns that John Deere’s repair policies prevent them from making necessary repairs to their equipment, an issue that has broader implications for agricultural operations dependent on efficient, functional machinery. Deere’s policies have led to lawsuits from farmers who argue that the company’s restrictions violate antitrust laws.

Farmers have claimed that these limitations force them to rely on Deere’s authorized repair services, which can result in long downtimes and high costs. The sentiment among affected farmers is that repair restrictions put them at the mercy of the manufacturer, unable to carry out even routine maintenance without costly professional help. To address these issues, Deere signed a memorandum of understanding with the American Farm Bureau Federation last year, aiming to provide farmers with access to the tools and information needed for repairs, including the option to go to third-party repair shops.

While this agreement represented a step forward, the right to repair remains largely under legislative and regulatory scrutiny. Colorado recently passed a law preserving the right to repair agricultural equipment, while federal bills on this issue have stalled. Notably, the Clean Air Act mandates that manufacturers state in their user manuals that equipment can be repaired by third parties, highlighting the growing legislative movement toward allowing consumers to handle equipment repairs. John Deere’s spokesperson has confirmed the company is cooperating with the FTC.

At the heart of the controversy lies the evolving relationship between technology and machinery, with agricultural equipment now including complex software that complicates repair options for consumers. Farmers have long called for the freedom to maintain and repair their inventory independently or through third-party technicians. The outcome of the FTC’s investigation could shape future policies not just for agricultural equipment but also for industries that rely heavily on proprietary software, as consumer advocacy for repair rights continues to grow.

Sources:

US FTC probing Deere over customers’ ‘right to repair’ equipment

The Feds Are Coming for John Deere Over the Right to Repair

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