WASHINGTON, D.C. — The Federal Trade Commission (FTC) has voiced its support for proposed legislation that would bolster Colorado’s right-to-repair laws. The FTC’s endorsement was presented before the Colorado General Assembly’s Committee on Business Affairs and Labor on February 29, 2024. The proposed bill, HB 24-1121, targets a common practice known as ‘parts pairing,’ which places restrictions on the repair of digital electronic equipment.
‘Parts pairing’ is a tactic employed by manufacturers whereby owners and independent repair providers must seek the manufacturer’s approval before they can fully integrate replacement parts into a device. This practice often limits consumers’ ability to have their devices repaired by independent providers or even undertake repairs themselves, potentially driving up costs or pushing consumers to buy new products.
Representing the FTC, attorney Christine M. Todaro from the Commission’s Bureau of Consumer Protection, detailed the FTC’s ongoing work to combat such repair restrictions. Todaro referenced the FTC’s May 2021 report to Congress, titled “Nixing the Fix,” which delved into the adverse effects of repair restrictions on consumers and the economy at large.
The “Nixing the Fix” report explored several types of repair restrictions, including manufacturers’ efforts to limit access to spare parts, diagnostic tools, and repair instructions. These are precisely the types of restrictions that Colorado’s proposed legislation aims to address.
Manufacturers have frequently defended these repair restrictions—’parts pairing’ included—by arguing that they are necessary to protect consumers and repair workers and to mitigate cybersecurity risks. However, the FTC’s research found little evidence to substantiate these claims. The “Nixing the Fix” report effectively debunked these justifications, leading to calls for legislative changes to protect consumers’ right to repair.
The FTC’s testimony emphasized its support for HB 24-1121, stating that the bill would safeguard Colorado consumers’ access to affordable repairs while promoting competition in repair markets. The Commission believes that increased competition can lead to numerous benefits, including lower prices, improved service, and greater innovation.
The proposed legislation aligns with the FTC’s broader commitment to consumer rights and fair competition. By supporting this bill, the FTC is sending a clear message to manufacturers about the need for transparency and fairness in their repair policies.
The Commission’s endorsement of the testimony before the Colorado General Assembly Committee was unanimous, with a vote of 3-0 in favor. This move marks a significant step forward in the ongoing battle for right-to-repair laws, not only in Colorado but across the nation. As other states monitor the progress of HB 24-1121, this could potentially signal a shift toward more comprehensive right-to-repair laws nationally, empowering consumers and independent repair providers while fostering competition in the repair market.
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