The introduction of a right to repair bill in Prince Edward Island (Bill 110) and the proposed amendments to the Farm Machinery Dealers and Vendors Act, sparked significant concerns from equipment dealers on the Island, the North American Equipment Dealers Association, as well as within the entire equipment industry.
But ultimately, the Bill did not proceed any further after a Committee of the Whole vote on April 17th, where further progress on the Bill was defeated by a vote of 17-6. All members of the Progressive Conservative Party who were present voted against the Bill, whereas the Liberal and Green opposition members accounted for the 6 yes votes.
“Unfortunately, both NAEDA and our equipment dealers on the Island were not consulted prior to this bill being introduced by the sponsor, Robert Henderson (O’Leary– Inverness)”, stated NAEDA Canada President John Schmeiser. “Had NAEDA been given the opportunity to meet with Mr. Henderson, and consult with the industry, he would have known that since 2021 there has been a solid industry commitment that provides customers access to the special tools, diagnostic equipment, parts, service manuals and repair training, that this Bill was trying to grant access to.”
But even more concerning to NAEDA and the equipment dealers on the Island, Bill 110 went beyond right to repair provisions and got into price fixing as well. “This Bill contains some of the worst language that we have seen in any right to repair bill in North America,” added Schmeiser. “Therefore, it wasn’t difficult to get the P.E.I. dealers behind NAEDA’s efforts to kill this Bill.”
Although there are a small number of dealers in P.E.I., NAEDA felt it was important that this bill not set a precedent that could be adopted elsewhere in Canada. With the federal right to repair consultations taking place, we believe it is more critical for that process to play out than for this bill to proceed.
Specific concerns that NAEDA had with Bill 110 included:
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- The bill referenced “fair price” but did not define it. Requiring the same or fair price for everyone would eliminate volume discounts and other contractual agreements that in some instances benefit independent repair shops.
- The bill introduced a concept of net profit percentage, which is unworkable because it would place a burden on the dealer to show they are making a “fair” profit margin and potentially subjects dealers to opening their books up to show their margins. NAEDA could not find any other such legislation that was in place in P.E.I. that requires a business to show the government its books in this manner.
- There was language in the Bill that if a dealer and manufacturer cannot provide a part in a reasonable amount of time, the customer would be entitled to replacement of their equipment at no cost. NAEDA viewed this as completely unreasonable, as there was no limitation on how old the equipment can be and it didn’t account for the depreciation of the equipment. A recommendation came forward during debate that there be a time limit of 25 years, but that too was viewed as unworkable and was ultimately defeated. NAEDA could foresee the problems dealers would face if customers tried to return equipment for payment from the dealer due to an unreasonable delay that was out of the dealer’s control.
- Bill 110 had a provision that if a dealer sold a part at a markup that was arbitrarily considered unfair, they would have to replace the tractor (or other equipment) at no cost or refund the purchase price. This places an unfair burden on the dealer. The mechanism that was in place, which would consider the price being unfair, was dominated by farmers and had no dealer or manufacturer representation.
Advocacy Efforts
On numerous occasions NAEDA reached out to each of the 27 MLAs in Prince Edward Island to state opposition to this bill. Contact with the Premier’s office was also made, and fortunately, they were very receptive to NAEDA’s concerns.
“We made a formal request to appear before the Standing Committee on Natural Resources and Environmental Sustainability to state our opposition,” added Schmeiser. “However, we were perplexed when MLA Henderson did not grant us the opportunity to formally present our concerns, instead we were advised to submit a written position, which we did.”
But most importantly, our dealer members in P.E.I. played an important role by also reaching out to their MLAs and expressing their concerns. This was the turning point in the advocacy effort.
John Reddin, president and chief executive officer at Green Diamond Equipment, a 15-store John Deere dealership with locations in P.E.I. and neighbouring provinces, was on the frontlines with NAEDA on the fight and was one of the dealers who repeatedly expressed concerns to Bill 110.
In his letter to the Standing Committee on Natural Resources and Environmental Sustainability, Reddin stated, “We wish to emphasize the potential risks associated with allowing end-users to reprogram machines, particularly in bypassing DEF systems mandated by government legislation for cleaner engine burning. Unauthorized modifications could have adverse effects on our climate and environmental sustainability. Additionally, there could be significant safety concerns with modifications. We had witness to such circumstances.”
Another concern of Reddin’s is cybersecurity. “With increasing connectivity, potential security issues could arise if customers attempt to undertake repairs independently.” Although small in size, P.E.I. has a unique but strong and vibrant agricultural industry. Detrimental legislation like this would have placed an unfair burden on equipment dealers and threaten their business to the point of existence.
“We are committed to finding a balanced approach that ensures the well-being of both farmers and the environment while maintaining the integrity of our products and services.” – John Reddin, Green Diamond Equipment
NAEDA believes Reddin’s comments set the right tone. Dealers can take care of the customer through the industry commitment and legislation is not needed. Therefore, with that in mind, NAEDA intends to host a “Right to Repair” demonstration at their dealership later this summer, to back up our position that this legislation was not necessary.
“We will invite all 27 MLAs, department officials, producer groups and other stake-holders to reinforce our commitment to the customer to provide them with the tools they need to repair their own equipment,” added Schmeiser. “We are looking forward to this demonstration as we know it will be impactful.”
Article Written by Joanne Olson, Equipment Dealer Magazine Managing Editor
JOANNE OLSON joined the association in 1999 as executive assistant. She currently serves as corporate secretary and managing editor of the association’s U.S. and Canadian editions of Equipment Dealer Magazine. Additionally, she is manager of the association’s Canadian office in Calgary, Alberta. Olson is involved in board governance, event planning and organization of golf tournaments, board meetings, and conferences. She writes articles for the magazines and provides copy editing for corporate communications. Olson also oversees database management, the CEDF Scholarship program, billing, and invoicing; member requests, and assists with website management.
