John Deere responds to lawsuit from US Federal Trade Commission regarding 鈥榮elf-repair鈥�

On 15 January, the US Federal Trade Commission (FTC), along with the states of Illinois鈥� and Minnesota鈥檚 Attorneys General, sued equipment manufacturer Deere & Company (John Deere) over its use of what the agency called 鈥渦nfair practices that have driven up equipment repair costs鈥� in the agriculture and construction industries. John Deere has since responded.

John Deere's autonomous diesel orchard tractor John Deere鈥檚 autonomous diesel orchard tractor (Image courtesy of John Deere)

The FTC, in its own , said John Deere 鈥� for decades 鈥� committed 鈥渦nlawful practices鈥� that 鈥渉ave limited the ability of farmers and independent repair providers to repair Deere equipment, forcing [users] to instead rely on Deere鈥檚 network of authorised dealers for necessary repairs鈥�.

Branding it an 鈥渦nfair steering practice鈥�, the FTC claimed in its statement that it had boosted John Deere鈥檚 鈥渕ulti-billion-dollar profits on agricultural equipment and parts, growing its repair parts business while burdening farmers with higher repair costs鈥�.

The FTC added, 鈥淭he only fully functional software repair tool capable of performing all repairs on Deere equipment is produced by Deere. Deere makes this tool available only to Deere鈥檚 authorised dealers, forcing farmers to solely rely on more expensive authorised dealers for critical repairs.

鈥淏y creating these restrictions, Deere has unlawfully acquired and maintained monopoly power in the market for certain repair services for Deere agricultural equipment, according to the FTC鈥檚 complaint.鈥�

While the complaint focused on 鈥渇arming equipment鈥� and the agricultural industry, the details could apply to Deere鈥檚 construction machines and dealer network, as well.

John Deere now waits the FTC鈥檚 final order, which could include civil damages or an injunction against the company. John Deere would be able to appeal any final order in US courts.

The FTC announced that it was suing John Deere on 15 January, five days before US President Donald Trump took office.

In an from John Deere, the company said, 鈥淭his lawsuit, filed on the eve of a change in [executive] administration, ignores the company鈥檚 long-standing commitment to customer self-repair and the consistent progress and innovation we have made over time.

鈥淭he complaint is based on flagrant misrepresentations of the facts and fatally flawed legal theories, and it punishes innovation and procompetitive product design. John Deere will vigorously defend itself against this baseless lawsuit.鈥�

More on Deere鈥檚 response to the FTC complaint
John Deere's autonomous articulated dump truck (Image courtesy of John Deere) John Deere鈥檚 autonomous articulated dump truck (Image courtesy of John Deere)

John Deere noted two dissenting opinions on a five-personal FTC panel, which called into question the FTC鈥檚 motives. Submission of the complaint to legal authorities was approved by a 3-2 vote.

Then FTC Commissioner Andrew Ferguson (now the FTC chair) said the lawsuit 鈥渁ppears to be the result of brazen partisanship鈥�. Ferguson noted the complaint was filed less than one week prior to the inauguration of President Donald Trump, suggesting the FTC made the move 鈥渋n haste to beat President Trump into office.鈥�

He added, 鈥淲e simply do not have the evidence to file this complaint with any real confidence of our ultimate chance of success.鈥�

John Deere said the company has been actively developing and promoting self-repair initiatives, including new integrations to its John Deere Operations Center.

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鈥淭he latest addition to Deere鈥檚 suite of digital solutions will further empower customers and independent repair technicians by, among other things, enabling them to reprogram Deere-manufactured electronic controllers,鈥� the company said, noting this applied to both the construction and ag industries.

鈥淲e鈥檝e continued to deliver new and enhanced solutions designed to improve that experience,鈥� said Denver Caldwell, vice president of aftermarket and customer support. 鈥淎s our equipment has become more technologically advanced, so too have the repair tools needed to advance customer capabilities. 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.鈥�

John Deere said its has empowered customers to take control of their repair and maintenance needs for years, 鈥渇rom publishing operator, diagnostic, and technical manuals, to selling parts over the counter to customers and independent repair shops to developing digital tools like Customer Service ADVISOR.鈥�

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