FTC Forces Deere to Open Tool Chest

LINCOLN, Neb. (DTN) -- John Deere reached a right-to-repair settlement with the Federal Trade Commission and five states that requires the company to make repair resources available to independent repair shops nationwide, according to an FTC order filed in a federal court on Wednesday, putting in place a permanent injunction requiring the company to open its repair ecosystem.

The lawsuit originally filed in the U.S. District Court for the Northern District of Illinois in January 2025 sought to stop what the FTC said was "anticompetitive conduct" on the part of John Deere. The states of Illinois, Arizona, Minnesota, Michigan and Wisconsin joined the lawsuit.

The FTC order defines repair resources to include Deere's Operations Center PRO Service.

Deere is required to "make available to every owner and IRP (independent repair shop) on fair and reasonable terms, on a license, subscription, or purchase basis, repair resources equivalent to those Deere then makes available to Deere dealers," according to the FTC order, contingent on when access is granted at more than 50% of Deere dealer locations.

"Defendant neither admits nor denies any of the allegations in the complaint," according to an FTC order.

"For purposes of this action only, defendant admits the facts necessary to establish jurisdiction."

Among the tools to come, the company will be required to make available the full suite of product improvement programs, or PIPS, by Dec. 31, 2026.

This is important because the settlement covers both the mandatory PIPs, as well as the "fix as fail" category that Deere previously kept more restricted, according to the settlement.

PIP information has largely been available only through Deere dealers, but the settlement requires anyone who is doing their own repairs to have full PIP access.

Deere will be required to make available:

-- The ability to view diagnostic trouble codes.

-- To program and reprogram, as well as to install embedded software including electronic control units, or ECUs.

-- To disable and reset electronic locks, immobilizers or security-related functions to allow for repairs.

-- To calibrate all equipment settings to factory specifications.

-- To replace engines and ECUs controllers.

-- The ability to view live and stored equipment data.

-- To access DTAC Solutions, Deere's technical support database.

-- To receive Deere Machine Health Insights.

-- To make emissions inducement overrides as well as the ability to use offline mode for reprogramming and diagnostics.

Deere is required to make most of the repair resources available immediately.

Others will have deadlines later, including Dec. 31, 2026, to deliver the health insights, DTAC solutions, fluid sampling and offline mode capabilities.

Denver Caldwell, vice president of aftermarket and customer support at Deere, said in a statement that the agreement is "good news for our customers."

"We've said from the beginning that our focus is on helping customers keep their machines running when and how they need them," he said.

"This agreement bolsters that commitment, and we're confident it will make a real difference for the people who depend on our equipment every day. We share the administration's and the states' desire to put farmers first while preserving Deere's ability to support American agricultural productivity, equipment safety and innovation."

DIRECTION TO DEERE DEALERS

The FTC order doesn't just regulate Deere directly, it also requires the company to instruct its dealers, "(1) to promote and support repair resources and future repair resources and to sell them to all owners and IRPs that request them, regardless of whether the owner or IRP purchases repair services from the Deere dealer; and (2) not to discriminate or retaliate in any way, including in the sales, financing, or servicing of Deere agricultural equipment, tools, or parts, against any owner or IRP that purchases repair resources...or engages in repair of Deere agricultural equipment."

John Deere is required to pay $1 million to each of the five plaintiff states within 30 days, to cover costs and attorney fees.

The company will be required to post a notice on the Deere website, to deliver notices to all equipment owners and independent repair shots who purchased equipment, parts or services and submitted warranty claims in the prior three years.

John Deere will be required to submit compliance reports to the FTC every 60 days as well as annual compliance reports for the next 10 years. The order requires the company's CEO to verify the reports.

In addition, the order said the settlement does not in any way affect ongoing private litigation on the issue.

"Today's settlement enables farmers to do what they've done for generations -- fix their own tractors and other farm equipment -- without having to pay an authorized John Deere dealer to do it for them," FTC Bureau of Competition Director Daniel Guarnera said in a statement.

"The settlement with Deere will help lower costs for American farmers. The FTC will continue fighting against anticompetitive restrictions on American consumers' right to repair."

SETTLEMENT CAVEATS

The order gives Deere an open-ended deadline and requires the company to use "reasonable best efforts" to obtain the necessary approval from an unnamed third party whose software is embedded in Deere equipment.

Until that happens, according to the order, the company is not obligated to provide capabilities for ECUs and embedded software functions.

In addition, the order gives Deere the ability to seek deadline extensions based on "good cause" shown.

The order states it would not be a violation for John Deere to give its dealers tools it does not provide to equipment owners and independent repair companies, if the tools qualify as "dealer business resources."

The FTC order sunsets in 10 years, ending Deere's obligations. There will be a four-year window after the deal expires for plaintiffs to sue if they discover violations that occurred before the order ends.

"FTC, States Sue Deere on Repair Rights," https://www.dtnpf.com/….

"Farmer Fights Deere's $99M Settlement," https://www.dtnpf.com/….

Todd Neeley can be reached at todd.neeley@dtn.com

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