Deeres repair policies spark FTC probe

By Andi Anderson

At the end of this past week, Reuters’ Jody Godoy reported that the U.S. Federal Trade Commission (FTC) is investigating farm equipment manufacturer Deere over its repair policies.

This probe, authorized on September 2, 2021, focuses on the restrictions Deere and other manufacturers place on repairing hardware or software, which regulators often refer to as limiting customers' ‘right to repair.’

The investigation became public through a filing by data analytics firm Hargrove & Associates Inc., which sought to challenge an FTC subpoena requesting market data from members of the Association of Equipment Manufacturers.

According to the filing, the FTC is examining whether Deere violated Section 5 of the Federal Trade Act, which prohibits unfair or deceptive practices affecting commerce. This law has been used in a range of cases, including investigations into companies like Amazon and pharmacy benefit managers.

Agri-Pulse’s Noah Wicks reported that the probe comes more than two years after the National Farmers Union, along with its affiliates and several ‘right to repair’ advocacy organizations, filed a complaint accusing Deere of violating antitrust laws.

These groups allege Deere restricts access to software embedded in its machines, preventing farmers and independent repair shops from fixing their own equipment.

In recent years, Deere’s repair policies have faced criticism from farm groups and repair advocates, who argue that the company has too much control over the tools needed to repair modern farm equipment.

Deere, however, maintains that it supports the right of customers to ‘safely maintain, diagnose, and repair their equipment,’ but it does not permit access to the software inside these high-tech machines.

“The farm equipment manufacturer has long insisted it already supports a customer’s right to ‘safely maintain, diagnose, and repair their equipment,’ just not the software inside of the high-tech machines." said Cory Reed, the president of Deere’s worldwide agriculture and turf division for production and precision ag, "Opening up access to embedded software code to third parties could allow them to illegally tamper with safety and emissions controls. It would also infringe on the company’s intellectual property interests.”

“‘We should be able to fix our own stuff. When farmers can’t access the proprietary software tools which are required to diagnose or complete repairs, that means they have to wait for an authorized technician before they can finish their work. The weather doesn’t wait on a dealership’s schedule — a delay could mean the loss of your harvest.'” said PIRG Right to Repair Campaign Director Nathan Proctor.

In January 2023, Deere entered into an agreement with the American Farm Bureau Federation to provide farmers and independent repair shops with the tools and information needed for repairs. Deere is cooperating with the FTC but has declined to comment further while the investigation is ongoing.

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