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FTC WEIGHS IN ON NON-LEGISLATION SOULUTION TO RIGHT TO REPAIR ISSUE

The Federal Trade Commission (FTC) in late December issued a letter to Congress promoting a self-regulatory program to address industry concerns regarding service information and tools. The letter responded to questions from Chairman of the House Subcommittee on Commerce, Trade and Consumer Protection, Rep. Cliff Stearns, R-Fla., as to whether the FTC could form a commission composed of non-industry "independent" directors to oversee the service information issue. While the FTC stated that it did not have such authority, it did state that it could help in the appointment of members of the board, which should be composed of both industry representatives with a stake in the issue and independent directors. The group would oversee resolution of the aftermarket service information and tools issues. 

The FTC recommended the use of a third-party enforcement system which would "provide important incentives for industry members." The commission further declared that "these programs can effectively address consumer or competitor complaints by assessing whether a particular practice violates industry standards." To help ensure the effectiveness of these self-regulatory initiatives, the commission generally recommends that, "in addressing the individual disputes, third-party systems should be impartial and objective; be public; and apply standards consistently."

AAIA has consistently supported a non-legislative solution, but has maintained that the commitment regarding tools and service information by the manufacturers be clear and comprehensive; that governance of the board should be fair and represent both the aftermarket and car companies equally; and most importantly, that it include a strong third-party enforcement component. It is unclear as to what action the subcommittee or the FTC will take, but the legislation's chief sponsor, Rep. Joe Barton, R-Texas, has called for the bill to be voted on by the subcommittee soon after Congress returns from its winter recess. œ

 

     
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