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Letter to the Editor
Thursday November 3
AASP-MN Requests Regulatory Review of Farmers Airbag Purchasing Program
The Alliance of Automotive Service Providers, Minnesota (AASP-MN) has requested that the Office of the Attorney General and Department of Commerce review the Farmers Insurance Group’s airbag pilot test program recently introduced in that state.Under the pilot program, shops participating in Farmers’ "Circle of Dependability" (COD) network program are required to estimate and order replacement airbags and related components from a single parts provider based in Florida. The parts provider ships the part(s) to the shop, but invoices and receives payment directly from the insurer.
In letters to Attorney General Mike Hatch and Department of Commerce Commissioner Glenn Wilson, AASP-MN raised concerns about interference with free competition as well as repairer liability for parts failure.
“We believe the Farmers’ pilot program may constitute an unreasonable restraint of trade, as it stifles competition and hampers the course of commerce in the automotive parts and automotive repair industries,” said Judell Anderson, AASP-MN Executive Director. “In addition, we’re concerned about the potential for failure – and subsequent repairer liability – of parts purchased from an unknown, geographically distant third-party vendor. Without some closer connection to the parts source, Minnesota consumers are more vulnerable to improper or substandard parts being used in their vehicles.” she added.
AASP-MN has offered to cooperate with Attorney General Hatch and Commissioner Wilson in gathering additional information about the airbag pilot test program. The association has also submitted information about the program to its legal counsel for review and analysis.
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