Investigation underway: FTC takes John Deere to task over right to repair

The Federal Trade Commission (FTC) has launched an extensive investigation into John Deere. In this context, the US trade regulator wants to find out whether the world's largest manufacturer of agricultural machinery "engages in or is engaged in unfair, deceptive, anticompetitive, collusive, coercive, predatory, exploitative, or exclusionary acts or practices in commerce relating to the repair of agricultural equipment". This would constitute a violation of Section 5 of the FTC Act, which prohibits – relevant practices similar to the Unfair Competition Act (Gesetz gegen den unlauteren Wettbewerb, UWG) in this country.

The proceedings, which have been ongoing for some time, became public following a petition published by the FTC on October 16 by the data analysis company Hargrove & Associates (HAI). It demands that a relevant request for information from the authority be restricted or revoked. The request is for the release of "data sets and reports on agricultural equipment from January 1, 2015 to the present". The FTC is also explicitly requesting confidential information provided to HAI by members of the Association of Equipment Manufacturers (AEM), who report their sales information via the analysis company's portal. The AEM is an association of manufacturers and suppliers of off-road equipment.

"Tractor modding" made more difficult

"HAI's business model is based on the trust of producers," says the submission, which caught the eye of news agency Reuters, among others. The company must therefore be in a position to protect their business secrets. Disclosing the confidential data of AEM members would also expose HAI to potential claims for breach of contract. The request for information is therefore too broad and would place an unreasonable burden on the mediation body.

The investigation focuses on restrictions that John Deere has imposed on hardware or software. The company justifies these with the Digital Millennium Copyright Act (DMCA). Critics complain that the manufacturer is completely ignoring the fact that this is not about copyright infringements. Instead, resourceful farmers want to repair their tractors, combine harvesters etc. themselves or adapt them to their own needs ("modding"). Regulatory authorities also see these practices as increasingly undermining customers' rights to repair the goods they have purchased. The company can also switch off machines remotely at any time.

Repair assurances on feet of clay

The FTC did not wish to comment on the case. A spokeswoman for John Deere emphasized that the company is cooperating with the authority, but could not comment further at this time. Recently, Senator Elizabeth Warren, a Democrat, warned John Deere that the company may also be violating environmental protection requirements under the Clean Air Act by failing to provide information in its manuals about the right of farmers to freely choose a workshop where they can have the emission control devices on their equipment repaired.

The machine manufacturer has been at the center of the debate on the right to repair for years. In 2023 , he promised to provide farmers with the tools they need to repair their machines. They should also be able to choose non-authorized workshops. However, the agreement contains an opt-out clause if legislators create further claims. Modding and the hacking of machine terminals to circumvent technical hurdles are also excluded. The US states of New York and Colorado have already enshrined repair claims in law. There is also a corresponding directive in the EU, which has long been controversial within the German government.

(nen)