FTC Plans July Workshop Probing How Repair Restrictions Affect Consumers

How manufacturer “limitations” on third-party product repairs may affect consumer protections is the subject of an FTC workshop July 16 at Constitution Center (also webcast), said the agency Wednesday. Whether the restrictions impair consumer rights under the Magnuson-Moss Warranty Act will be among the issues the FTC wants to study, it said. The 1975 statute, which the agency enforces, was created to thwart manufacturers from using warranty disclaimers that dupe consumers. The FTC also wants to learn the impact the restrictions have on small and local businesses, and the extent to which consumers even know about the restrictions. So-called “right-to-repair” bills in several states (see 1704090001) threaten manufacturers with fines for restricting third-party repairs. The tech industry mobilized against the bills, on various grounds, including arguing that enabling product repairs through independent shops risks exposing trade secrets. The FTC seeks “empirical research” data by April 30 on the “prevalence and impact” of repair restrictions. Limitations may include “code” that disables products repaired by someone other than the manufacturer, or product designs that “inhibit repairs,” such as attaching batteries with proprietary glue that only the manufacturer can remove, it said. The commission also seeks public comment by Sept. 16 in docket FTC-2019-0013 via regulations.gov on issues related to repair restrictions.