New York State Enacts the First Right-to-Repair Law
Published on 13 Jan 2023
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New York, USA (National/Federal)
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by Practical Law Commercial Transactions
PRACTICAL LAW
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13 Jan 2023
New York State enacted the first right-to-repair bill, the Digital Fair Repair Act, which requires manufacturers to make repair information and parts available to consumers and subjects violators to fines of up to $500 per incident.
The Digital Fair Repair Act (the Act) aims to allow consumers to hire whomever they want to repair their electronics at a fair price. It accomplishes this goal by requiring original equipment manufacturers (OEMs) to:
Provide the same diagnostic tools, repair manuals, and parts to the public for repair of "digital electronic equipment" that they provide to their own repair technicians.
Make these tools, manuals, and parts available on "fair and reasonable terms."
Digital Electronic Equipment
The Act applies broadly to "digital electronic equipment," defined as any product with a value over ten dollars that depends for its function, in whole or in part, on digital electronics embedded in or attached to the product. This includes, for example, laptops, smartphones, and tablets.
Fair and Reasonable Terms
The Act's "fair and reasonable terms" provision requires OEMs to:
Provide repair manuals to owners and independent providers free of charge.
Provide tools needed to diagnose, maintain, or repair digital free of charge.
Make parts available:
at a cost equivalent to the cost an authorized repair provider would incur; and
free from any "substantial" obligations or restrictions.
Limitations
The Act exempts several categories of products that would otherwise qualify as digital electronic equipment, including motor vehicles, home appliances, farm equipment, and medical devices. It also shields manufacturers from liability for damages and injuries related to repairs made by consumers or independent repair providers.
Penalties
Manufacturers that violate the ACT may be subject to a civil penalty of $500. Additionally, the Attorney General can bring an action to enjoin manufacturers from engaging in any conduct that violates the law. The law does not provide a private right of action.
Additional Limitations Imposed by Governor Hochul's Signing Memorandum
contains several amendments that make the Act considerably weaker than the original version of the bill. Pursuant to the signing memorandum:
OEMs will be allowed to provide "assemblies of parts" rather than individual components.
Only devices manufactured and sold in New York on or after July 1, 2023 will be subject to the Act (electronics currently owned by consumers are exempt).
OEMs will not be required to provide any passwords, security codes, or materials to override security features.
Digital products that are business-to-business sales or business-to-government sales are exempt.
The memorandum characterizes these changes as mere "technical amendments" that were necessary to lessen security risks and the risk of physical injuries while making repairs, but consumer advocates claim the changes render the bill functionally toothless.
Right-to-repair activists may be disappointed that the Act is weaker than it was originally intended, but the right-to-repair movement is gaining momentum and other states are likely to follow New York's lead. Currently, right-to-repair proposals are pending in Pennsylvania, Massachusetts, and Minnesota. To prepare for these changes, device manufacturers should consider:
Setting up consumer repair programs.
Reviewing terms and conditions for consumer electronic products, including warranty provisions, to ensure they comply with all applicable right-to-repair laws.