US FTC Says Repair Restrictions By Manufacturers Impacts Consumer Rights & Small Businesses

The US Federal Trade Commission (FTC) has released a study looking at consumer safety and antitrust concerns surrounding manufacturer-imposed repair limits, especially in the cell phone and automobile industries.

These requirements include the use of adhesives that make it impossible to replace components, the lack of medical software, and the scarcity of replacement parts.

Small companies suffer as a result of these maintenance limits, which can have an effect on customer protection under the Magnuson-Moss Warranty Act. It also outlines the steps the FTC should take in such instances of anti-repair activities.

How Repair Restrictions Impacting Customer Rights

Many electronic goods have become extremely difficult to fix and manage, according to a study sent to Congress by the US Federal Trade Commission. These products also require specialized equipment, access to patented testing software, or have components that are difficult to procure.

This makes it almost difficult for customers to repair their phones or other items, and it also limits the capacity of a small repair shop to address the problem. Manufacturers’ anti-repair practices, especially in the cell phone and automobile industries, violate the Magnuson-Moss Warranty Act, which regulates consumer product warranties.

Many black-owned small companies are in the repair and maintenance industry, according to the study, and anti-repair policies will adversely impact black-owned small businesses. According to the survey, lower-income Americans are more likely to be smartphone-based, and maintenance limits on smartphones have a negative impact on these populations.

Makers also use adhesives in phone components, and laptop manufacturers such as Microsoft use adhesives in batteries and display screens, making them impossible to repair.

Some vendors find their diagnostic software inaccessible, forcing customers and even repair shops to send the unit to the retailer because they can’t figure out what’s wrong. Manufacturers of cell phones and automobiles have been known to restrict the supply of replacement parts, forcing consumers to purchase parts directly from the manufacturers, resulting in longer wait times and higher prices.

What Manufacturers Say About The Repair Restrictions

Manufacturers say that these maintenance limits are in order to safeguard intellectual property rights and deter accidents, according to the article.

They also argue that these restrictions protect small repair shops’ reputations by holding them liable in the case of a poor repair. To address these issues, the FTC stated that suppliers might be exacerbating the problem by “not making parts and guides accessible to individuals and small repair shops, and not providing details in these manuals about the risks of specific repairs.”

According to the FTC, a manufacturer’s use of a repair limitation may be deemed a breach under Section 5 of the FTC Act if it creates serious damage (monetary harm or unwarranted health and safety risks) that is not outweighed by benefits to customers or competitiveness. It could be considered an antitrust violation in some cases. The Federal Trade Commission may even “declare those forms of maintenance prohibitions illegal.”