John Deere responds to lawsuit from US Federal Trade Commission regarding ‘self-repair’

John Deere’s autonomous diesel orchard tractor (Image courtesy of John Deere)

The FTC, in its own statement, said John Deere – for decades – committed “unlawful practices” that “have limited the ability of farmers and independent repair providers to repair Deere equipment, forcing [users] to instead rely on Deere’s network of authorised dealers for necessary repairs”.

Branding it an “unfair steering practice”, the FTC claimed in its statement that it had boosted John Deere’s “multi-billion-dollar profits on agricultural equipment and parts, growing its repair parts business while burdening farmers with higher repair costs”.

The FTC added, “The only fully functional software repair tool capable of performing all repairs on Deere equipment is produced by Deere. Deere makes this tool available only to Deere’s authorised dealers, forcing farmers to solely rely on more expensive authorised dealers for critical repairs.

“By creating these restrictions, Deere has unlawfully acquired and maintained monopoly power in the market for certain repair services for Deere agricultural equipment, according to the FTC’s complaint.”

While the complaint focused on “farming equipment” and the agricultural industry, the details could apply to Deere’s construction machines and dealer network, as well.

John Deere now waits the FTC’s final order, which could include civil damages or an injunction against the company. John Deere would be able to appeal any final order in US courts.

The FTC announced that it was suing John Deere on 15 January, five days before US President Donald Trump took office.

In an official statement from John Deere, the company said, “This lawsuit, filed on the eve of a change in [executive] administration, ignores the company’s long-standing commitment to customer self-repair and the consistent progress and innovation we have made over time.

“The complaint is based on flagrant misrepresentations of the facts and fatally flawed legal theories, and it punishes innovation and procompetitive product design. John Deere will vigorously defend itself against this baseless lawsuit.”

More on Deere’s response to the FTC complaint

John Deere’s autonomous articulated dump truck (Image courtesy of John Deere)

John Deere noted two dissenting opinions on a five-personal FTC panel, which called into question the FTC’s motives. Submission of the complaint to legal authorities was approved by a 3-2 vote.

Then FTC Commissioner Andrew Ferguson (now the FTC chair) said the lawsuit “appears to be the result of brazen partisanship”. Ferguson noted the complaint was filed less than one week prior to the inauguration of President Donald Trump, suggesting the FTC made the move “in haste to beat President Trump into office.”

He added, “We simply do not have the evidence to file this complaint with any real confidence of our ultimate chance of success.”

John Deere said the company has been actively developing and promoting self-repair initiatives, including new integrations to its John Deere Operations Center.

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“The latest addition to Deere’s suite of digital solutions will further empower customers and independent repair technicians by, among other things, enabling them to reprogram Deere-manufactured electronic controllers,” the company said, noting this applied to both the construction and ag industries.

“We’ve continued to deliver new and enhanced solutions designed to improve that experience,” said Denver Caldwell, vice president of aftermarket and customer support. “As our equipment has become more technologically advanced, so too have the repair tools needed to advance customer capabilities. We are committed to offering customers the best equipment ownership experience, both in the form of world-class dealer support and extensive self-repair resources.”

John Deere said its has empowered customers to take control of their repair and maintenance needs for years, “from publishing operator, diagnostic, and technical manuals, to selling parts over the counter to customers and independent repair shops to developing digital tools like Customer Service ADVISOR.”

John Deere celebrates 75 years of dozer manufacturing Company began dozer production in Dubuque, Iowa in 1949