Harley-Davidson defeats US consumer lawsuit over ‘right to repair’
By Mike Scarcella
June 6 (Reuters) -Harley-Davidson has persuaded a judge to dismiss a proposed class action claiming the company imposed unlawful restrictions on customers that boosted the cost of repairs for its iconic motorcycles.
U.S. District Judge William Griesbach in Green Bay, Wisconsin, federal court on Wednesday ruled for now against 15 individual consumers who bought Harley-Davidson motorcycles between 2016 and 2022.
The consumers claimed Harley-Davidson illegally tied the sale of its motorcycles and their factory warranties to the requirement that buyers use only the company’s branded parts through authorized dealers. The lawsuit alleged violations of antitrust and warranty laws.
Griesbach said the plaintiffs could file an amended lawsuit within 30 days.
Milwaukee-based Harley-Davidson and attorneys for the plaintiffs did not immediately respond to requests for comment.
In their coordinated lawsuit, the Harley-Davidson owners challenged a provision of the manufacturer's limited warranty that said the use of unauthorized parts “may void” the warranty.
Harley-Davidson countered that the provision does not say the company “will” void a warranty if certain parts are used, only that it may.
The plaintiffs said Harley-Davidson was “impermissibly leaving purchasers of expensive motorcycles to guess whether they will lose valuable warranty coverage by using the ‘wrong’ parts.”
Griesbach sided with Harley-Davidson on the warranty provision, and he concluded that Harley-Davidson had not tied the sale of its motorcycles to the use of branded parts.
The consumers had not alleged they were “precluded from buying a motorcycle without agreeing to purchase Harley-Davidson parts,” Griesbach wrote.
The Biden-era Federal Trade Commission in 2021 voted to make "right to repair" a priority, vowing to boost enforcement actions against illegal repair restrictions.
In 2022, Harley-Davidson agreed to resolve an FTC case accusing the company of illegally curtailing buyers’ repair rights.
Harley-Davidson in the FTC settlement said it would not void warranties for customers who had used authorized service centers or third-party parts.
Harley-Davidson did not admit liability in agreeing to settle. The company said its resolution of the FTC’s case has no bearing on the private civil lawsuit.
The case is Harley-Davidson Aftermarket Parts Marketing, Sales Practices and Antitrust Litigation, U.S. District Court, Eastern District of Wisconsin, No. 2:23-md-03064-WCG.
Read more:
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Harley-Davidson hit with class actions over 'right to repair' restrictions
Reporting by Mike Scarcella
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