The Biden administration has decided to confront the issue of corporate consolidation and antitrust concerns. This must be a priority; too many Americans are being left on the sidelines of our economy because big companies have too much power to operate without fear of government oversight or marketplace competition.
When people think of consolidation, monopolies or antitrust, they tend to think of companies like Amazon, which dominate industries (like bookselling) and use their power to unfairly rig the market to their advantage and keep out competition. Another component of this competition issue is a matter called "Right to Repair."
Right to Repair is the concept that consumers should be able to repair, or hire anyone they want to repair, a product they purchase. For example, I strongly support a farmer being able to repair his or her own equipment, like a tractor, on their own property, without being forced to go to a licensed dealer.
Going to an official dealer often means higher repair costs, and a time burden of having to travel and haul heavy machinery long distances.
If farmers don't like the way they are being treated by these equipment manufacturers, they don't have a lot of alternatives. According to the National Farmers Union, about 95 percent of large farm tractors are made by three companies: Deere, CNH Industrial, and AgCo, all of which engage in the kind of tactics that force farmers to rely on dealers they own or license.
Another concern with Right to Repair is when companies claim a warranty is voided if anyone besides a licensed operator repairs a device or product. This is a common problem with technology devices like laptops or smartphones. The tech companies say to consumers: Let us overcharge you to fix something simple, because if you don't and something expensive breaks, you are on your own because you voided your warranty.
While I strongly support Right to Repair, I also believe there must be common-sense limitations. Specifically, I am talking about ensuring that medical devices--such as MRI machines, infusion pumps, and ventilators--must be serviced or repaired by individuals who are held to a higher standard than the person who fixes my computer or vehicle.
To date, the Food and Drug Administration (FDA) has not taken any steps to enforce that those repairing medical devices are held to the same high standards as companies which produce medical equipment. In fact, since these third-party servicers don't have to register with the FDA, we have no idea how many of these operations are out there and who they are.
The lack of FDA oversight also means that if states like Arkansas pass Right to Repair laws for medical devices, then there are no protections for patients to ensure the equipment which may be needed to save their lives are being properly serviced.
The companies which manufacture (and service) these products must be FDA licensed and meet rigid protocols to ensure the devices they sell and repair are safe, sterile and effective. The same is not true for unlicensed servicers; which is the crux of the reason I oppose a completely unregulated marketplace for third-party servicers, which in the last legislative session Arkansas Senate Bill 332 would have created.
Also, the FDA states that a majority of the dangers associated with third-party servicers occur with "remanufacturing" and not servicing. Remanufacturing is modifying a medical device for another use that is not authorized by the FDA. Doesn't it stand to reason that the same unaccountable folks servicing these devices are also remanufacturing them?
Thankfully, the Biden administration has indicated it intends to broaden people's rights when it comes to Right to Repair. The White House released an executive order this summer that instructs the Federal Trade Commission to issue rules to make it easier for people to repair their own products. I strongly support this Executive Order on Promoting Competition in the American Economy.
Insisting that medical devices are serviced or repaired by the manufacturers--or licensed servicers held to the same standards as the manufacturers--may increase some medical costs. But we don't hesitate to make generic drug manufacturers comply with rigid standards, so why should we allow companies that service medical devices to operate without any oversight?
The answer is simple: We shouldn't.
Ronnie Shows, a Democrat, represented Mississippi in the House of Representatives from 1999 to 2003.