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July 01, 2021 02:52 PM

Trade groups laud FTC for 'Nixing the Fix'

Tire Business Staff
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    BETHESDA, Md. — Seven trade groups active in the U.S. automotive aftermarket recently thanked the Federal Trade Commission for its efforts to highlight the barriers consumers face in seeking repair work from independent motor vehicle service facilities.

    The groups — including the Auto Care Association, Specialty Equipment Market Association and Tire Industry Association — lauded the FTC for publishing "Nixing the Fix: An FTC Report to Congress on Repair Restrictions," which shed light on "anti-competitive" repair practices in the automotive and other industries.

    The groups state in their letter that "the report accurately describes the extensive breadth of problems vehicle owners face and recognizes that the commission can take certain steps relatively quickly without further statutory authority."

    In their eight-page joint letter to FTC Chair Lina Khan, the trade groups offer recommendations the commission could undertake immediately and also included suggestions for more substantive actions that may require congressional action:

    • Improve consumer education and compliance assurance with the Magnuson-Moss Warranty Act (MMWA), which prohibits the conditioning of warranties with the use of original equipment parts or service.
    • Eliminate manufacturers' marketing practices that discourage the use of non-original equipment parts or services.
    • Develop better enforcement tools the commission can undertake to help ensure compliance with the MMWA.
    • Advocate for new legal authority that would expand the scope of the MMWA to include commercial vehicles.
    • Obtain legislation that would provide vehicle owners with access to data transmitted by their vehicle and provide them the ability to have that data made available to the independent repair shops where they have their vehicle repaired.

    The FTC published "Nixing the Fix" in early May in response to a request from Congress regarding anticompetitive practices related to repair markets.

    Other trade groups that signed the letter are: Automotive Oil Change Association; Service Station Dealers of American and Allied Trades; Car Coalition; and Automotive Recyclers Association.

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