The Federal Trade Commission is suing Deere & Co. for alleged restrictions on repair technologies. (Photo courtesy of Deere & Co.)
The Federal Trade Commission and attorneys general from Minnesota and Illinois are suing Deere & Co. claiming it engages in “unfair practices” relating to equipment repairs.
The recent move by the FTC follows years of advocacy and a formal complaint from National Farmers Union and locals in key agricultural states, including Iowa, Nebraska, Missouri, Ohio and Wisconsin.
Iowa Farmers Union President Aaron Lehman called the company a monopoly and said it was taking the tools out of farmers’ hands.
“Farmers are innovative and hard-working, and they should have the right to repair their own equipment,” Lehman said in a statement.
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A press release from FTC about the complaint said the company’s “unfair” practices have “boosted Deere’s multi-billion-dollar profits” while “burdening farmers with higher repair costs.”
According to the filing, the company has made increasingly sophisticated equipment that requires electronic diagnostic and repair tools, of which Deere has a monopoly.
The complaint alleges Deere makes this technology available only to licensed John Deere dealers, which limits the ability of farmers and independent repair providers to repair equipment themselves. This, according to the complaint, costs farmers valuable time and money when their equipment breaks down.
National Farmers Union President Rob Larew called the lawsuit a “key victory in this fight for family farmers and ranchers” and said “monopolies should not stop farmers from being able to repair their own equipment.”
“When we prevail, farmers will have the power and freedom to fix their equipment faster and at a lower cost,” Larew said in a statement. “We commend the FTC on this decisive step to safeguard farmers’ rights.”
Deere & Company said in a statement the FTC’s complaint was based on “flagrant misrepresentations of the facts” and “fatally flawed legal theories.”
The company, which started in Iowa and is now based in Illinois, said it has a “longstanding commitment” to customer repair, including a recent announcement that allows customers to reprogram electronic controllers on Deere-manufactured equipment.
Denver Caldwell, the company’s vice president of aftermarket and customer support, said the company is dedicated to “enhancing” its customers’ abilities to repair equipment, even as it becomes more technologically advanced.
“We are committed to offering customers the best equipment ownership experience, both in the form of world-class dealer support and extensive self-repair resources,” Caldwell said in the statement. “This offering advances our goal of minimizing customers’ unplanned downtime and enables them to be more productive and profitable in their operations.”
The Deere & Company response to the FTC complaint pointed to a dissenting statement from Andrew Ferguson, who was then a commissioner, now chair of the FTC since the recent change in administration.
Ferguson, who was joined by commissioner Melissa Holyoak on the statement, said his colleagues’ complaint, which was filed Jan. 15, had a “stench of partisan motivation” and “shortchanges an ongoing investigation.”
Ferguson said the commission has worked to understand the complex repair market, but does not have the evidence to expect success on such a complaint. He said it should instead focus on a short order to provide relief to farmers.
The FTC complaint asks for the courts to order Deere & Company make their repair technology tools available to farmers and independent repair providers and to prohibit Deere from engaging in “unfair and anticompetitive” practices.
The complaint is set to have a motion hearing at 1:30 p.m. Friday in the U.S. District Court for the Northern District of Illinois in Rockford, Illinois.
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