John Deere, most well-known for its agricultural machinery, has found itself in hot water after the FTC filed a lawsuit.
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Per a report by the Daily Mail, regulators sued the company on Wednesday. They accuse John Deere of 'ripping off farmers.'
The suit alleges that John Deere increases repair costs for its machinery by forcing farmers to use its 'authorized dealer network.' The lawsuit explains that John Deere has illegally boosted its profits with this restriction.
The limited list of available dealers means farmers cannot use independent mechanics. It also means workers must rely on the help of specialist dealers rather than attempt to solve a problem themselves. The Federal Trade Commission explains that software is the main culprit. 'The company produces the only software that enables repairs of all Deere equipment. This software is only available to dealers in the network.
The suit explains that the practice means John Deere retains 100% of the market share. With no competition, the company is free to dictate prices.
The Practice Can Be Devastating For Farmers Using John Deere Equipment
The lawsuit also explains the potential negative impact that these software restrictions have on consumers. 'Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income.' The Daily Mail report concludes that the lawsuit would see John Deere make its repairs more readily available to independent mechanics and equipment owners.
This lawsuit isn't the first time John Deere has found itself in the spotlight recently. Back on July 16th, the company very publically reversed its DEI policies. John Deere posted a lengthy statement on X with the message: "Our customers' trust and confidence in us are of the utmost importance to everyone at John Deere. We fully intend to earn it every day and in every way we can."
Users on X have viewed the statement over 6 million times, and it seems to have been positively received based on the comments. Still, many chimed in, reminding the company they had not forgiven it for axing hundreds of jobs a few weeks prior.
