June 6 (Reuters) - Harley-Davidson ( HOG ) has persuaded a judge
to dismiss a proposed class action claiming the company imposed
unlawful restrictions on customers that boosted the cost of
repairs for its iconic motorcycles.
U.S. District Judge William Griesbach in Green Bay,
Wisconsin, federal court on Wednesday ruled for now against 15
individual consumers who bought Harley-Davidson ( HOG ) motorcycles
between 2016 and 2022.
The consumers claimed Harley-Davidson ( HOG ) illegally tied the
sale of its motorcycles and their factory warranties to the
requirement that buyers use only the company's branded parts
through authorized dealers. The lawsuit alleged violations of
antitrust and warranty laws.
Griesbach said the plaintiffs could file an amended lawsuit
within 30 days.
Milwaukee-based Harley-Davidson ( HOG ) and attorneys for the
plaintiffs did not immediately respond to requests for comment.
In their coordinated lawsuit, the Harley-Davidson ( HOG ) owners
challenged a provision of the manufacturer's limited warranty
that said the use of unauthorized parts "may void" the warranty.
Harley-Davidson ( HOG ) countered that the provision does not say
the company "will" void a warranty if certain parts are used,
only that it may.
The plaintiffs said Harley-Davidson ( HOG ) was "impermissibly
leaving purchasers of expensive motorcycles to guess whether
they will lose valuable warranty coverage by using the 'wrong'
parts."
Griesbach sided with Harley-Davidson ( HOG ) on the warranty
provision, and he concluded that Harley-Davidson ( HOG ) had not tied
the sale of its motorcycles to the use of branded parts.
The consumers had not alleged they were "precluded from
buying a motorcycle without agreeing to purchase Harley-Davidson ( HOG )
parts," Griesbach wrote.
The Biden-era Federal Trade Commission in 2021 voted to make
"right to repair" a priority, vowing to boost enforcement
actions against illegal repair restrictions.
In 2022, Harley-Davidson ( HOG ) agreed to resolve an FTC case
accusing the company of illegally curtailing buyers' repair
rights.
Harley-Davidson ( HOG ) in the FTC settlement said it would not void
warranties for customers who had used authorized service centers
or third-party parts.
Harley-Davidson ( HOG ) did not admit liability in agreeing to
settle. The company said its resolution of the FTC's case has no
bearing on the private civil lawsuit.
The case is Harley-Davidson Aftermarket Parts Marketing,
Sales Practices and Antitrust Litigation, U.S. District Court,
Eastern District of Wisconsin, No. 2:23-md-03064-WCG.
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