Vermont Fair Repair Act (H.161)
Vermont House Bill 161 presents significant concerns regarding business operations, manufacturer relationships, and customer safety. While the bill claims to promote "fair repair," it introduces risks that could negatively impact equipment distributors, manufacturers, and customers.
It is unnecessary. The existing Memoranda of Understanding (MOUs) already provide Vermont farmers with the support they need. Establishing a private cause of action against dealers and OEMs based on the pricing of parts, tools, and documentation is problematic. It could lead to unnecessary legal challenges and disputes within the industry.
It is vague. The legislation lacks clarity regarding the tools and documentation that must be provided for repair. As currently written, the definitions are broader than intended, which could complicate compliance. Key terms such as repair, diagnosis, and maintenance need to be defined to ensure they are directly tied to the restoration of the product to OEM design specifications and applicable emissions and safety standards.
It is not flexible. Repair solutions must meet customer needs while ensuring compliance with emissions and safety standards. This bill seeks to limit technological flexibility by prohibiting the use of validation processes and/or requiring internet access in ways that are not practical for modern machinery.
Vermonters rely on tractors, compact construction equipment, and farm machinery to sustain the state’s forestry and agricultural economy. On Friday, March 7, 2025, equipment distributors met with key lawmakers at United Ag & Turf in Newport, VT, to discuss the Fair Repair Act. This visit provided a firsthand look at how state and federal regulations impact local equipment dealers, their employees, and the customers they serve. Lawmakers engaged directly with constituents who sell and service these essential tools, gaining insight into the critical role equipment dealers play in Vermont’s economy, workforce, and infrastructure development.
Dig Deeper….
The Fair Repair Legislation undermines manufacturer-authorized dealerships. Equipment dealers invest heavily in training, infrastructure, and diagnostic tools to properly service and repair agricultural and forestry equipment under manufacturer agreements. The bill forces manufacturers to provide the same proprietary parts, tools, and software to independent repair providers and end-users, effectively diminishing the value of authorized dealerships and eroding the competitive advantage that dealerships have cultivated through significant investments. Authorized dealerships rely on servicing and repairs as a major revenue stream. By allowing unrestricted access to proprietary tools and parts, H.161 diverts business away from authorized dealers, reducing their profitability and job opportunities.
Many dealers operate under strict agreements with manufacturers, ensuring equipment is serviced according to industry and safety standards. This bill weakens these agreements and places additional pressure on dealers to compete with unauthorized repair providers.
Agricultural and forestry equipment contains complex and high-powered machinery that requires expert handling. Allowing independent repair providers and owners unrestricted access to parts and software introduces safety risks due to improper repairs and modifications.
Independent repair providers may not have the necessary training or access to proprietary manufacturer knowledge to safely diagnose and repair machinery. This could result in equipment failures leading to operator injuries, equipment damage, and liability concerns.
While authorized dealers adhere to manufacturer safety and compliance standards, H.161 exempts independent repair providers from liability for negligent repairs, except in cases where the issue is due to a faulty manufacturer part (Sec. 4053(c)). This shifts risk onto the equipment owners and users, potentially increasing litigation risks for dealers when customers face breakdowns.
H.161 mandates that manufacturers provide proprietary parts, tools, and documentation at costs that cannot impose "unreasonable burdens" on repair providers. However, this vague language fails to recognize the legitimate costs of software licensing, encryption security, and maintaining specialized diagnostic tools.
Many equipment warranties require authorized service to remain valid. If an independent repair provider improperly repairs or modifies equipment, the warranty could be voided, leaving the equipment owner liable for future repairs. This would create customer dissatisfaction and disputes with dealers when warranty claims are denied due to unauthorized third-party repairs.
The bill fails to protect manufacturers and dealers from intellectual property theft and cybersecurity risks. Modern agricultural and forestry equipment increasingly relies on embedded software, telematics, and precision farming technology that is tightly integrated with manufacturer platforms.
The bill disrupts the structured repair ecosystem that supports resale values and trade-in programs. Authorized dealerships typically refurbish and certify used equipment for resale, ensuring buyers receive quality-controlled, fully operational machines.
There is a risk that poorly repaired, unsafe, or altered equipment enters the resale market. This will lower the value of used equipment and could make it more difficult for dealers to sell pre-owned machinery with confidence. If equipment becomes easier to modify or repair with non-OEM parts, resale values could drop faster, negatively affecting both customers looking to trade in machinery and dealerships reliant on used equipment sales.