FTC sues John Deere over machine repair issues

In a statement, the company denied any wrongdoing and said it "will defend itself vigorously."

16.01.2025 | 14:15 (UTC -3)
Cultivar Magazine

The U.S. Federal Trade Commission (FTC), along with the attorneys general of Illinois and Minnesota, has filed a lawsuit against Deere & Company. They accuse the company of unfair practices that have increased the cost of repairing machinery and equipment.

According to the FTC, "for decades," Deere has "limited the ability of farmers and independent repair shops to perform repairs on Deere equipment." This practice would direct repairs exclusively to the company's network of authorized dealers.

The FTC said Deere would concentrate significant power in the repair industry by restricting access to its most comprehensive repair software, Service Advisor, to authorized dealers only. A “lesser” version, called Customer Service Advisor, would not offer full repair capabilities, limiting farmers’ options.

The FTC's decision to authorize the lawsuit was approved by a 3-2 vote. Chairwoman Khan released a statement detailing the reasons for the action, while dissenting Commissioners Melissa Holyoak and Andrew Ferguson expressed concerns in separate statements.

John Deere's point of view

John Deere in the United States issued the following statement on the matter:

This lawsuit, filed on the eve of a change in management, ignores the company’s longstanding commitment to customer self-repair and the consistent progress and innovation we have made over time, including the launch of Equipment Mobile in 2023 and the previously announced launch of new features for the John Deere Operations Center later this year. The complaint is based on gross misrepresentations of fact and fatally flawed legal theories, and penalizes innovation and pro-competitive product design. John Deere will vigorously defend itself against this baseless lawsuit.

As FTC Commissioner Andrew Ferguson (soon to be FTC Chairman) explained in his dissenting statement, the lawsuit “appears to be the result of blatant partisanship,” “lends the lawsuit the stench of partisan motivation,” and appears “rushed to defeat President Trump in office.” Commissioner Ferguson went on to state that “we simply do not have the evidence to file this Complaint with any real confidence in our ultimate chance of success.” Commissioner Melissa Holyoak joined Commissioner Ferguson’s dissenting statement, both of whom voted against filing the complaint.

“It is extremely disappointing that three FTC commissioners have chosen to pursue a meritless lawsuit on the eve of the transition to a new administration,” said Denver Caldwell, vice president of aftermarket and customer support. “Our recent discussions with the Commission revealed that the agency still lacked basic information about John Deere’s industry and business practices and confirmed that the agency was instead relying on inaccurate information and assumptions.” As Commissioner Ferguson acknowledged, “the Commission should not waste taxpayer resources on lawsuits based on an evidentiary record as underdeveloped as this one.” In fact, as of last week, John Deere was still fielding inquiries from the agency.

Consistent with Deere's announced plans to launch additional self-repair capabilities, and at the Commission's invitation to enter into settlement discussions, the parties were engaged in active negotiations regarding a possible resolution to the investigation when the FTC filed its lawsuit.

As our equipment has become more technologically advanced, Deere has introduced a number of new innovations, tools and resources to equip customers and independent repair technicians with the maintenance and repair needs of our equipment.

Deere remains fully committed to ensuring that customers have the highest quality equipment, reliable customer service, and that they, along with independent repair technicians, have access to tools and resources that can help diagnose, maintain and repair our customers’ machines. Deere’s commitment to these ideals will not waver, even as it fights the FTC’s baseless allegations.

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