Dive Brief:
- Deere & Co. has agreed to pay $99 million as part of a settlement to resolve a class-action lawsuit in federal district court that accused the tractor manufacturer of conspiring to monopolize its repair services market.
- The Moline, Illinois-based company, which does business under the John Deere brand, said it will ensure that its repair resources are widely available to farmers and independent repair providers.
- The settlement applies to people who paid authorized dealers to repair their large equipment purchased from Deere starting on Jan. 10, 2018. It is subject to approval by a judge later this month and would end the case with no indication of wrongdoing.
Dive Insight:
Deere has faced a number of “right to repair” lawsuits in recent years. The underlying issue stems from a growing movement of consumers who seek to repair their own products, such as cell phones, laptops, cars and tractors, instead of going back to the original manufacturer for services.
Despite more legislation passing to protect consumers, critics claim the issue has worsened as products become more technologically advanced and manufacturers embed protected software and approve design choices that make it more difficult for consumers and independent repair shops to work on the products.
The class action against Deere, filed in the U.S. District Court for the Northern District of Illinois, Western Division, alleged that the company withheld repair software and other services from farmers and independent repair providers, forcing them to rely on authorized dealers for repairs of large farm equipment with electronic control units, such as tractors, combines and harvesters.
The plaintiffs, a group of farmers and independent repair shops, argued that this arrangement allowed Deere and its dealers to charge “supracompetitive prices” for its services and “reap the benefit” of an unlawfully restrained repair market. They accused the company of violating federal antitrust laws, which allegedly resulted in higher repair and travel costs, as well as extended equipment downtime.
In a statement Monday, Deere said it remains dedicated to supporting customers’ ability and access to “maintain, diagnose and repair their equipment safely, efficiently and conveniently.”
As part of the settlement, the tractor giant agreed to make its repair software widely available to farmers and independent repair providers. The software will have the “same capability to diagnose and repair” large equipment as the kind that dealer technicians use, according to the agreement. Deere must also enable owners, lessors and independent repair technicians to report potential defects in design and manufacturing. The company is required to provide this injunctive relief for a 10-year period.
"As we continue to innovate industry-leading equipment and technology solutions supported by our world-class dealer network, we are equally committed to providing customers and other service providers with access to repair resources," Denver Caldwell, Deere’s vice president of aftermarket and customer support said in a statement Monday.
As Deere looks to improve accessibility to its repair software and services, National Farmers Union President Rob Larew said in a statement that more work needs to be done at the federal level to ensure protections for farmers and ranchers.
“When critical equipment breaks down, farmers must be able to make timely repairs themselves or work with a trusted independent mechanic,” Larew said. “This settlement underscores the urgent need for federal right-to-repair laws that permanently guarantee farmers access to repair tools on fair and reasonable terms.”
The Illinois case consolidated at least 13 complaints filed against Deere, according to California law practice Carlton Fields.
Deere must still face a separate, similar lawsuit filed by the Federal Trade Commission last year alleging anticompetitive behavior. District Judge Iain Johnston denied the company’s motion for judgment on the agency’s case in June. Discovery is ongoing, and the FTC case is expected to continue into next year.
Johnston is also overseeing the pending settlement case.
