The Federal Trade Commission (FTC) is expected to vote on Wednesday (July 21) on whether the makers of everything from iPhones to farm equipment should push consumers to use licensed dealers to repair products.
According to Reuters, the vote will determine whether the FTC will make the so-called “right to repair” issue a priority, following a report released in May showing that companies use a variety of tactics to dissuade consumers from seeking repairs by third parties, who often charge less than dealers. These practices — which include license agreements and denigrating spare parts that don’t come from the manufacturer — have been called anti-competitive by critics.
In the report, the FTC says repair restrictions hurt small businesses as well as consumers. As PYMNTS reported in May, the thinking here is that repair businesses are unable to compete when companies put out products that aren’t easily fixed (or can’t be fixed in an economical fashion). This lack of choice can inflate repair prices to a place where it’s cheaper to just buy a new product.
The report uses the example of Apple, which has stringent rules for independent computer repair shops that want to work on iPhones, MacBooks and other devices. These stores could face random inspections and audits for up to five years.
The five FTC commissioners — three Democrats and two Republicans — are also due to vote on whether to rescind a 1995 policy statement dealing with mergers. Should they rescind the statement, “a company that had been stopped from proceeding with one merger must give prior notice to the FTC if it is contemplating a similar transaction,” Reuters said. The commission would then be able to halt the transaction without needing to launch a months-long investigation into the new merger.
Finally, the FTC is also scheduled to vote on whether to rescind a regulation that says clothing makers need to spell out how their clothing should be cared for on tags.