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U.S. PIRG, Repair Association, and Others Call for an End to Design Patent Misuse

March 02, 2023

Consumer advocates and aftermarket industry leaders are fighting back against the latest move from automakers that could result in fewer choices for consumers when making common car repairs.  

In response to a request for comment from the U.S. International Trade Commission (ITC), where automakers areattempting to block certain aftermarket collision repair parts from entering the United States, right to repair supporters are rallying around the need to protect consumers’ right to choose from a multitude of brands and prices when making repairs.

The ITC matter is just the latest example of a growing, 20-year trend of design patent misuse by automakers that is making common repair parts less accessible and more expensive for American consumers.

As U.S. PIRG’s Nathan Proctor and The Repair Association’s Gay Gordon-Byrne noted, competition allows consumers to access affordable, high-quality car repairs. Unfortunately, many original equipment manufacturers (OEMs) take steps to squash competitors instead of focusing on their own services:

“It is best for the public when we have multiple options in a competitive market for repairs, which keeps costs down and service quality high…Manufacturers lose business to others who offer better or more convenient repair services, or lower costs, sometimes, instead of improving their own repair offerings, they attempt to undermine their competition.”

– Gay Gordon Byrne, Executive Director, The Repair Association & Nathan Proctor, Right to Repair Campaign Director, U.S. Public Interest Research Group (PIRG)

Automotive aftermarket professionals and advocates—like leaders from Capstone Auto Body Parts and Simco Automotive Inc.—underscored the negative consequences automakers’ request would have for their customers, like higher prices and greater supply limitations:

“Without [a high-quality, low-cost aftermarket replacement] option…[the] only alternative is to return to the…dealer and pay non-competitive prices to keep their vehicles…on the road.”

– Dennis Shiau, CEO, Capstone Auto Body Parts

“[Aftermarket suppliers provide] a valuable service for [vehicle owners] by providing a cost-effective OE replacement lamp option. Without that option, [automakers] will have a monopoly on these parts that can result in non-competitive practices such as price gouging and dealer-controlled distribution.”

– Peter Nguyen, Director of Operations, Simco Automotive Inc.

Other automotive aftermarket professionals—like representatives from Certified Automotive Parts Association (CAPA), CAR Coalition, Dorcas & Kalam Company, and National Auto Parts USA, Inc—highlighted safety risks the request could create for American drivers:

“Increasing the price of automotive parts and causing delays will cause harm to most Americans. A vibrant U.S. economy depends on the timely accessibility of automobile repair parts manufactured both in the United States and globally. Simply put, the ready availability of automotive parts is of critical importance to the national economy. Any kind of delay in the availability of automotive parts, or any kind of cost increase based on the elimination of competitive parts, will impede safe vehicle repair and maintenance with severe negative consequences for the public at large.”

– Clark Plucinski, Chairman, CAPA

“If [aftermarket suppliers] did not offer a lower-priced alternative for these vehicle applications, many…customers would likely skip necessary repairs since the original equipment (OE) part would be considered too costly. This could potentially create safety issues for the affected vehicles as well as other drivers on the road.”

 – Justin Rzepka, Executive Director, CAR Coalition

The industry overall appreciates having the option to choose an OE part or an aftermarket alternative, depending on…the cost difference between the choices…Without the lower-cost option…provide[d] for these vehicle applications, a large segment of my customer base would simply forgo the repairs as the OE part would be deemed too expensive. This could result in safety concerns for the vehicles in question and for the other motorists sharing the road.”

– John Chang, Dorcas & Kalam Company

My customers appreciate having options when it comes to vehicle repair and maintenance…Without [aftermarket options] there is no low-cost alternative which can result in cars being totaled that can be repaired. A consumers only choice in that instance would be to pay the high cost of OE parts at the dealer, or to not do the repair at all; creating a safety issue with their vehicle.

 – Raymond Tsai, General Manager, National Auto Parts USA, Inc

Negative impacts and safety risks could be particularly acute for rural Americans with limited access to OEM repair facilities, as the president of Continental Auto Parts noted:

“Many of the remote regions have limited access to OE parts/dealerships and rely heavily on…aftermarket parts suppliers. [Sometimes,] only the aftermarket alternative is available for critical repairs that have safety implications. As a significant portion of my business involves insurance companies for collision related repairs, having a lower-cost alternative to the OE Part is certainly an important factor in providing options and the best service to the motoring community.”

 – Thomas Lee, President, Continental Auto Parts

Taken together, these comments clearly illustrate why consumers in communities big and small across the United States need access to quality, affordable aftermarket options for car repairs. Bipartisan federal legislative solutions such as the Save Money on Auto Repair Transportation (SMART) Act and the Right to Equitable and Professional Auto Industry Repair (REPAIR) Act would protect consumers’ right to choose and restore market competition—tell your member of Congress to take action today!

Have you been impacted by car repair restrictions? Click HERE to tell your story.