Thursday, October 17, 2024

"US FTC probing Deere over customers 'right to repair' equipment" (DE)

Talk about a long strange trip. Deere and Apple were front and center in denying that people who purchased their products had ownership rights including the right to repair. Apple saw the error of their ways, though it is still difficult to repair a problem with their equipment without running afoul of some fine print or other. Deere on the other hand said they would honor the principles of right-to-repair and ended up getting laughed at by their farmer customers.

From Reuters, October 17:

The U.S. Federal Trade Commission is probing farm equipment maker Deere (DE.N) over the company's repair policies, according to a filing made public on Thursday.

The investigation, authorized on Sept. 2, 2021, focuses on repair restrictions manufacturers place on hardware or software, often referred to by regulators as impeding customers' "right to repair" the goods they purchase.
 
The probe was made public through a filing by data analytics company Hargrove & Associates Inc, which sought to quash an FTC subpoena seeking market data submitted to it by members of the Association of Equipment Manufacturers.
 
Neither HAI nor AEM is a target of the FTC probe, according to the filing.
A spokesperson for the FTC declined to comment, and a representative for Deere did not immediately respond....
....MUCH MORE
 
Here's the latest, a filing from a third party with a lot of detail: "https://www.ftc.gov/system/files/ftc_gov/pdf/611970-HAI%27sPetitiontoQuashtheFTC%27sCID%28FTCFileNo.211-0191%29%28PUBLIC%29.pdf"
 
Shut them down, this has gone on far too long. Some of our early posts:
April 2015
John Deere Tells Patent Office That Purchasers Don't Actually Own the Machine They Paid For (DE)
 May 2015 
"John Deere Clarifies: It's Trying To Abuse Copyright Law To Stop You From Owning Your Own Tractor... Because It Cares About You" (DE)
November 2016 
For the Next Two Years Auto Manufacturers Can't Have You Arrested...
...for trying to repair or modify the software on your own car.

And in a tangential development:
Big Data Down On the Farm: "DuPont Joins Deere on Software in Challenge to Monsanto" (DE; DD; MON)
 
Here's the introduction to a March 2017 post:
"Why American Farmers Are Hacking Their Tractors With Ukrainian Firmware" (DE)
John Deere says:
"When a customer buys John Deere equipment, he or she owns the equipment," ...

Their actions say they are full of manure.
As one critic puts it:

"They require buyers to accept an End User License Agreement that disallows all of the activities they say are allowed in their statement," she said. "Deere is a monopolist and has systematically taken over the role of equipment owner, despite having been paid fairly and fully for equipment. Their claims to control equipment post-purchase are inconsistent with all aspects of ownership including accounting, taxation, and transfer of products into the secondary market."

It's all about the intellectual property and unfortunately the Supreme Court has been wishy-washy on a couple decisions but there is hope. As we noted in the November '16 post below:

One of the heroes of this stuff was Thai native and U.S. student Supap Kirtsaeng who won his case, Kirtsaeng v. John Wiley & Sons, Inc., wherein he argued he should be able to re-sell textbooks he had lawfully purchased. The Supreme Court upheld the First Sale Doctrine that "you bought it, you own it".....
June 2021
"Microsoft and Apple Wage War on Gadget Right-to-Repair Laws"
July 2021
President Biden Sides With Farmers Over "Right to Repair", Deere Responds (DE; AAPL; MSFT)

It's bizarre that this is still an issue. I thought that with Kirtsaeng v. John Wiley & Sons, Inc., 568 U.S. 519, and the First Sale Doctrine, that it had been decided you own what you bought.

And though Apple isn't immediately affected by the coming Executive Order, they have been using Deere as a stalking horse on the issue and should be called to account as well,

January 2023
Right To Repair: One Down, Dozens More To Go (DE; AAPL)

It's about time.

From Reuters, January 8:

The American Farm Bureau Federation and machinery manufacturer Deere & Co signed a memorandum of understanding on Sunday that ensures farmers have the right to repair their own farm equipment or go to an independent technician.

As the agriculture sector accelerates its adoption of technology, the reliance on high-tech machinery such as GPS-guided combines and tractors has become more common-place.

But equipment makers such as Deere have generally required customers to use their parts and service divisions for repairs and until recently, only allowed authorized dealers the means and tools to access the complex computerized systems of their tractors and other machinery....
*****
.... The MOU aims to find a solution to the "right to repair" debate in the private sector, rather than through legislation or regulation, according to the document. It benefits farmers and independent repair facilities in the United States and Puerto Rico, for the "lawful operation and upkeep of Agricultural Equipment," the MOU states.....

And many, many more.

February 2024
Responding To The Fall In Farm Income, John Deere Introduces Farm Implements as a Service (DE; FIaaS)
I think the big green machine means well but it seems that every tweak to their business plan is a retrograde motion back towards sharecropping.