Judge Dismisses Harley Davidson Antitrust Lawsuit. But Is It Over?
A class action antitrust suit against Harley-Davidson is dead...for now. Also: Google says it won't confiscate phones with 3rd party parts; and up close with used tech unicorn Back Market's CEO.
A class action lawsuit against motorcycle manufacturer Harley-Davidson has ended with a judge dismissing the case. The case centers on plaintiffs alleging that the company's restrictions on repairs for its motorcycles were unlawful, particularly regarding the requirement to use only branded parts from authorized dealers.
Reuters reported that U.S. District Judge William Griesbach in Green Bay, Wisconsin, federal court on Wednesday ruled against 15 individual consumers who bought Harley-Davidson motorcycles between 2016 and 2022.
The class action suit claimed Harley-Davidson illegally tied the sale of its motorcycles and factory warranties to a requirement that buyers use only the company’s branded parts sold through authorized dealers. The lawsuit alleged violations of federal antitrust and warranty laws, including the Magnuson Moss Warranty Act.
In his ruling, Judge Griesbach found that the challenged provision in the Harley-Davidson warranty about the use of unauthorized parts did not void the warranty but merely suggested it "may" do so. Such language merely reflects allowances in the Magnuson Moss Act in which a warrantor may “limit [coverage] for damage caused by unauthorized parts or modifications.”
Nor did the judge believe that the plaintiffs presented evidence to suggest that Harley-Davidson had tied the sale of its motorcycles to the use of branded parts. “The alleged risk of losing warranty coverage, in itself, is not the type of economic coercion or forcing that constitutes a tie under antitrust law,” Judge Griesbach wrote in his decision. Having to sacrifice warranty coverage to buy a non-Harley-Davidson part, in other words, is “no illegal tying arrangement.”
Harley’s Sketchy History With Repair
Harley Davidson - an iconic American brand - has been the subject of federal scrutiny for anticompetitive practices before. In October, 2022, the FTC announced penalties against Harley-Davidson for illegally restricting customers’ right to repair their purchased products.
In that case, the FTC alleged that Harley-Davidson included terms in its warranties that claimed that the warranty would be void if customers used independent repairers or third-party parts, in violation of the Magnuson-Moss Warranty Act and the FTC Act.
The FTC also found that Harley-Davidson failed to properly disclose all warranty terms in a single document, and instead directed consumers to visit a local dealership to fully understand the warranty.
The orders prohibited Harley-Davidson from telling consumers that their warranties will be void if they use third-party services or parts, or that they should only use branded parts or authorized service providers. Violations could find the FTC seeking civil penalties of up to $46,517 per violation in federal court.
The Fight To Repair Harleys Isn’t Over
While the ruling brings the case to a close for now, the legal battle isn't over yet. Those suing Harley Davidson have the option to file an amended lawsuit within 30 days to revise their claims.
Got a repair story? The FTC wants to hear it!
When trying to get a product fixed, you might find yourself in a fix. That’s why the FTC wants to hear what happened if you recently tried to get a product repaired.
The FTC has set up a special link for your warranty or repair stories. The Commission is interested in learning about your experiences across a wide range of products – from cars, kitchen appliances, and cell phones to grills and generators.
Did the manufacturer require you to use their authorized repair provider or void your warranty? Did you struggle to find an independent repair option or replacement parts to do your own repair? The FTC wants to know!
Other News
Google Says it Won’t Confiscate Phones With 3rd Party Parts
Google is quoted in The Register that despite the fine print of its user agreement saying they retain the right to keep phones sent in for repairs with 3rd party parts, they won’t actually do it:
"If a customer sends their Pixel to Google for repair, we would not keep it regardless of whether it has non-OEM parts or not," a spokesperson told The Register. "In certain situations, we won't be able to complete a repair if there are safety concerns. In that case, we will either send it back to the customer or work with them to determine next steps. Customers are also free to seek the repair options that work best for them. We are updating our Terms and Conditions to clarify this." — Google Spokesperson
Right to repair advocates are speaking up, saying that a promise from Google isn’t enough and that the policy must change soon.
Adobe’s AI Stance Angers Artists, Erodes Artistic Ownership
As the erosion of ownership over physical products through the use of software continues, there are now concerns over AI dismantling ownership of creative works like visual arts and graphic design. Adobe caught major criticism when it released an update to its terms of service where users needed to accept that using Adobe products (a standard in graphic design circles) that your images are subject to being trained and copied by AI learning models like OpenAI’s DALLE. And while the company has tried to assure users that they would never do such a thing, there is a lack of trust from some users in Adobe’s word.
Planned Obsolescence For Electric Vehicles Will Be Devastating
As EV’s continue to become controlled by software, some are sounding the alarm that cars may follow the path of the iPhone—a few aesthetic upgrades each year while the manufacturer degrades older models through software incompatibilities. Matteo Wong at The Atlantic writes that even though there are impressive specs in terms of durability of EV’s, there are worrying signs that the shady tactics of tech companies might be spreading to the auto world. Just like Apple is able to use software upgrades on newer vehicles and stop supporting older models, the same is true for companies like Tesla. For example, Tesla’s Autopilot is only compatible with vehicles built after September 2014, and newer updates continue to only roll out on newer models. These lack of supports for older model tech and pushes to upgrade already have big consequences for electronics, and for 2,000lb cars the impacts could get even bigger.
Netherlands Legal Study Gives Right to Repair the Green Light
After the EU proposed its Ecodesign Regulation, the Netherlands is looking toward whether they can 1. pass a right to repair law aligned with the EU’s goals and 2. a national destruction ban that would prohibit certain operations involving the destruction of unsold products. A study commissioned by the Dutch Ministry of Infrastructure and Water Management comes to a general conclusion: yes they can legally introduce national destruction bans and a right to repair before or alongside EU regulations.
Guardian Profiles CEO Of Used Tech Unicorn Back Market
The Guardian published a profile of Thibaud Hug de Larauze, the founder of Back Market, a marketplace for used technology that has raised more than $1 billion and has plans to expand into 18 countries.
Hug de Larauz says he would rather identify as an eco-warrior than a tech guru, as he fights to persuade us all to buy pre-owned phones, laptops and other devices, and repair or recycle our old ones.
Repairing a smartphone once can save more than 77kg of carbon emissions. Back Market, with 700 employees, expects its first annual profit soon, following 45% growth last year. The UK is its fastest-growing market for Back Market, with sales up 80% year-on-year. Back Market currently controls 44% of the UK's online refurbished tech market, over half for smartphones.
Overcoming the Stigma of Used Electronics
The technology company Back Market, which deals in refurbished electronics is seeing growth amidst $1000 phone price tags and rising prices. With costumers opting for used phones citing saving money, others see the choice as an environmental win. As a company based in Europe, some a speculating that continued legislative pushes for right to repair laws in the EU will help fuel the company’s growth
Why Mechanics Hate Certain Cars (Hint: It’s the Software)
Green Party Manifesto Pushes Repair, Circular Economy
With elections looming in the UK, that country’s Green Party unveiled a 2024 election manifesto on Wednesday calling for the party to “advocate for a circular economy that reduces the waste of resources.” Among other things, the Green Party pledged to make ten-year warranties mandatory for white goods to encourage repair and reuse and to “eliminate built-in obsolescence.” The Green Party is also calling for more sustainable use models such as policies that encourage car-sharing and neighborhood tool libraries for equipment.
Four More States Join DOJ’s Apple Antitrust Suit
Four more states signed on to a federal antitrust suit against Apple. The DOJ announced that Indiana, Massachusetts, Nevada, and Washington had joined the DoJ's antitrust lawsuit against Apple, bringing the total to 20 states plus Washington DC. The lawsuit accuses Apple of violating the Sherman Antitrust Act and local laws by monopolizing the Apple hardware-software ecosystem. The case highlights the lack of compatibility between Apple's solutions and third-party products, such as the absence of iMessage on non-Apple smartphones. The DOJ suit also criticizes Apple for blocking "super apps," cloud-based game streaming, and third-party wallet apps. Apple faces international investigations and fines, including nearly $2 billion in the EU for in-app purchase policies and a potential $1 billion lawsuit in the UK for App Store fees.
EVs Could Last Forever…If Car Companies Let Them
Electric cars capable of running for 1 million miles are within reach, but vehicle makers may prevent long lived cars by restricting access to maintenance and parts, Matteo Wong writes for The Atlantic. Wong highlights a 2014 Tesla Model S, driven by Hansjörg von Gemmingen-Hornberg, which will likely became the first EV to reach 2 million kilometers (1.2 million miles). Despite its high mileage, the Tesla required several battery and motor replacements. However, new technology could greatly increase battery life. With fewer moving parts than gas-powered cars, resulting in less damage and maintenance, EVs have the potential to last longer and be cheaper to keep on the road than gas-powered vehicles. However, as it stands most EV repairs can be done only by manufacturers and their retailers. Mechanics require access to specialized parts and training that are hard to come by. Whether automakers will make the spare parts and technical knowledge needed to fix EVs available to independent repair shops is uncertain, Wong writes.