MOTOR VEHICLE OWNERS RIGHT TO REPAIR ACT

(Statement Upon Introduction of S. 2617 - Congressional Record)


SEN. PAUL WELLSTONE OF MINNESOTA
IN THE U.S. SENATE

Thursday, June 13, 2002

Madam President, I rise today to introduce the Motor Vehicle Owners' Right to Repair Act of 2002. This legislation would protect the viability of independent service station and repair shops and ensure that consumers will continue to have a choice of automotive service providers.

The 1990 Clean Air Act mandated that vehicle manufacturers install computer systems to monitor emissions in 1994 model year cars and beyond. Today, many vehicle systems are integrated into the car's computer system, making auto repair an increasingly ``high tech'' business and making access to the computer and the information it contains vital to the ability to perform repairs.

Increasingly, however, independent repair shops are being barred access to the codes and diagnostic tools necessary to repair newer model cars. The effect is to reduce consumer choice for auto repair services, and to endanger the livelihood thousands of small, family owned repair shops across the country.

On April 10, I met with a group of repair shop owners from Minnesota. The explained that new practices by some auto manufactures were preventing them from competing on an even playing field. One thing we don't need is another industry where all the little guys, the small, independent businesses, are driven out. This is terrible for our communities. And reduced competition means higher prices for consumers

Specifically, the Motor Vehicle Owners' Right to Repair Act would simply require a manufacturer of a motor vehicle sold in the United States to disclose to the vehicle owner, a repair facility, and the Federal Trade Commission, FTC, the information necessary to diagnose, service, or repair the vehicle. The bill bars the FTC from requiring disclosure of any information entitled to protection as a manufacturer's trade secret.

This legislation is an example of what is good for small business is good for the consumer. The bill is endorsed by the 44 million member American Automobile Association, AAA, as well as the Automotive Service Association, the trade association of automotive service professionals.

To reiterate, I want to introduce a bill and tell colleagues about it. I have sent out a ``Dear Colleague'' letter. This is very much a pro-consumer bill as well. It is called the Motor Vehicle and Owners Right to Repair Act. There has to be a better title.

Basically, this is the issue. The automotive industry, for 100 years, has always shared information with mechanics. But post-1994, you have cars with very computerized systems. All of a sudden, the automotive industry is now saying to independent mechanics, we will not share with you the information about the computer system so you can get into the computer system, do the diagnosis and the repair, in which case I think it is a blatant anticompetitive practice.

It puts the independent mechanics, the small guys, out of business. In addition, it says to the consumers: Listen, you might want to take your car back to the dealership for repair, but now that is your only choice because you may want to go to the neighborhood mechanic you have worked with for years and he might want your business, but we are going to make it impossible for him to get your business. We are going to make it impossible for you to go there.

I like this piece of legislation because it is little guy versus big guy. It feels right to me. At 5 feet, 5 inches, I like the little guys.

In April, some mechanics came by our office and talked with Perry Lang, who works with me, and they said this is happening to us and asked for some help.

I say on the floor of the Senate two things: No. 1, I am circulating a ``Dear Colleague'' letter. I hope to get a lot of support. I think there will be a lot of support.

This is going on in the House with a lot of Republicans as well as Democrats.

The second thing that I am saying to the industry today on the floor of the Senate – and I think they are watching this carefully –  is we are going to get a good head of steam on this. If you want to sit down and negotiate an agreement with the mechanics that is fair to these independent mechanics, go ahead. Then we won't have to pass the legislation. But I could not believe when I heard the report of what they are dealing with.

Again, you have a blatant anticompetitive practice of the industry basically saying we will not share with you any information about our computerized systems. If the industry wants to say there is some kind of a trade patent secret which they can't share, they can go to the FTC and get approval for that. Otherwise, for 100 years, this has not happened. Now we get into a blatant collusion, anticompetitive practice that is unfair to the independent mechanics who a lot of Senators know as friends and as small businesspeople. I am aiming to stop it.