H.R. 7404 — Fair Repair Act

This section requires original equipment manufacturers (OEMs) of digital electronic equipment to make available to independent repair providers and equipment owners, on fair and reasonable terms, documentation, parts, and tools—including updates—for diagnosis, maintenance, or repair. The section prohibits OEMs from using parts pairing or other mechanisms to (1) prevent installation or functioning of otherwise-functional non-OEM parts; (2) inhibit or reduce part functioning, causing reduced device performance; (3) create false, misleading, deceptive, or non-dismissible alerts or warnings about parts; (4) charge additional fees or increased prices for future repairs; or (5) limit parts purchases or repair services to authorized parties.

This section authorizes enforcement of violations of section 2—treated as violations of a Federal Trade Commission (FTC) rule defining unfair or deceptive acts or practices under 15 U.S.C. 57a(a)(1)(B)—by the FTC using all powers, jurisdiction, duties, penalties, privileges, and immunities of the FTC Act (15 U.S.C. 41 et seq.) and authorizes the FTC to promulgate necessary regulations under 5 U.S.C. §553. (Thus, the FTC may pursue administrative cease-and-desist orders, civil penalties up to $50,120 per violation (adjusted for inflation), and federal court actions, without limiting its other authorities.) It further authorizes State attorneys general (or designees) to bring civil actions in federal or state court for injunctions, compliance, civil penalties, and damages, restitution, or other compensation for State residents; requires prior written notice to the FTC (or immediate notice if infeasible), with FTC rights to intervene, participate, and appeal; prohibits State actions during any pending FTC action against the same defendant for the same violation; and permits combining such claims with State law claims.

This section establishes rules of construction and limitations on the Act's application, including— (1) requiring original equipment manufacturers of digital electronic equipment to provide owners and independent repair providers, on fair and reasonable terms, with documentation, tools, and parts needed to disable and reset electronic security locks or functions during diagnosis, maintenance, or repair; (2) prohibiting requirements to divulge trade secrets, as defined in 18 U.S.C. §1839, except as necessary to provide such documentation, tools, and parts; (3) preserving terms of agreements between original equipment manufacturers and authorized repair providers, except that any such terms purporting to waive, restrict, or limit the manufacturer's obligations under the Act are void; and (4)–(7) excluding from the Act's requirements—(4) motor vehicle manufacturers, motor vehicle equipment manufacturers, and motor vehicle dealers; (5) medical device manufacturers; (6) manufacturers, distributors, importers, or dealers of off-road or non-road vehicles (e.g., aircraft, motorcycles, marine vessels, all-terrain vehicles); and (7) manufacturers of safety communications equipment for emergency services organizations (e.g., police, fire, or medical rescue agencies).

This section limits the liability of original equipment manufacturers (OEMs) and authorized repair providers for damages, injuries, or data issues arising from repairs, diagnosis, maintenance, or modifications of digital electronic equipment performed by independent repair providers or owners using OEM-provided parts, tools, or documentation. Specifically, it (1) precludes liability for indirect, incidental, special, or consequential damages; loss of data, privacy, or profits; or reduced functionality; (2) relieves OEMs of any obligation to warrant such repairs; and (3) precludes liability for improper use of personal data or data privacy/security breaches.

This section defines terms used in the Act, including (1) "authorized repair provider" (i.e., a person with an arrangement with an OEM to offer diagnosis, maintenance, or repair services of digital electronic equipment under the OEM's name, or the OEM itself); (2) "digital electronic equipment" (i.e., any product that depends for its functioning, in whole or in part, on digital electronics embedded in or attached to the product); (3) "documentation" (i.e., manuals, diagrams, schematics, security codes, or other information used in diagnosis, maintenance, or repair of digital electronic equipment); (4) "fair and reasonable terms" (i.e., costs and terms equivalent to the most favorable offered by an OEM to authorized repair providers, without unnecessary obligations or restrictions); (5) "independent repair provider" (i.e., a person not affiliated with an OEM or its authorized providers, when repairing the OEM's equipment); (6) "medical device" (i.e., as defined in 21 U.S.C. 321(h)); (7) "motor vehicle"; (8) "motor vehicle dealer"; (9) "motor vehicle manufacturer"; (10) "original equipment manufacturer (OEM)"; (11) "owner"; (12) "part"; (13) "parts pairing"; and (14) "tool".