FTC Files Lawsuit Against John Deere Over Repair Practices

FTC Files Lawsuit Against John Deere Over Repair Practices

2025-01-16 politics

Washington, D.C., Thursday, 16 January 2025.
The FTC, alongside Illinois and Minnesota, accuses John Deere of monopolizing repair services, driving up costs for farmers, and hindering their ability to perform independent repairs.

On January 14, 2025, the Federal Trade Commission (FTC), together with attorneys general from Illinois and Minnesota, filed a significant federal lawsuit against John Deere [1][2]. The lawsuit alleges that Deere has engaged in ‘decades of unlawful practices’ that force farmers to rely exclusively on authorized dealers for equipment repairs [3]. FTC Chair Lina Khan emphasized that these ‘illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income’ [4].

Core Allegations

The lawsuit centers on Deere’s software repair tools, particularly the disparity between dealer and customer access. The company’s ‘Full-Function Service ADVISOR’ tool, essential for complete repairs, is exclusively available to authorized dealers, while customers only have access to a limited version costing $3,160 per year [1]. This restriction has effectively given Deere a 100% market share in the repair services market [5]. The FTC argues that this practice violates both the Sherman Antitrust Act and the FTC Act [6].

Political Context and Opposition

The timing of the lawsuit has sparked political controversy, with Republican FTC commissioners Andrew Ferguson and Melissa Holyoak voting against it and expressing concerns about ‘partisan motivation’ given the upcoming transition to the Trump administration on January 20, 2025 [2]. The case represents a significant move by the Biden administration in its final days to address right-to-repair issues [2][6].

Industry Impact and Response

John Deere has strongly contested the allegations, describing them as ‘meritless’ and based on ‘flagrant misrepresentations’ [5]. The company points to its 2023 memorandum of understanding with the American Farm Bureau Federation as evidence of its commitment to repair rights [3]. However, the FTC claims this agreement was poorly implemented and may have been designed to undermine state right-to-repair legislation [1]. According to a 2023 study, U.S. farmers could save up to $1.2 billion annually by using independent mechanics instead of dealerships [7].

Sources


FTC John Deere