Harley-Davidson Scores Legal Win As Judge Dismisses Consumer Lawsuit On Repair Restrictions

Harley-Davidson Scores Legal Win As Judge Dismisses Consumer Lawsuit On Repair Restrictions

Harley-Davidson has successfully persuaded a judge to dismiss a proposed class action lawsuit alleging the company imposed unlawful repair restrictions that inflated costs for its iconic motorcycles.

U.S. District Judge William Griesbach, presiding in federal court in Green Bay, Wisconsin, ruled against 15 individual consumers who purchased Harley-Davidson motorcycles between 2016 and 2022.

The consumers had claimed that Harley-Davidson illegally linked the sale of its motorcycles and their factory warranties to the requirement that buyers use only Harley-Davidson-branded parts and authorized dealers for repairs. The lawsuit accused the company of violating antitrust and warranty laws.

Judge Griesbach indicated that the plaintiffs have the opportunity to file an amended lawsuit within 30 days. Both Milwaukee-based Harley-Davidson and the plaintiffs' attorneys have not yet responded to requests for comment.

In their coordinated lawsuit, the Harley-Davidson owners challenged a clause in the manufacturer's limited warranty stating that the use of unauthorized parts "may void" the warranty. Harley-Davidson argued that this clause does not explicitly state that the company "will" void the warranty if non-Harley parts are used, only that it could potentially do so. The plaintiffs contended that Harley-Davidson left buyers of costly motorcycles uncertain about whether they would lose valuable warranty coverage by using non-Harley parts.

Griesbach ruled in favor of Harley-Davidson regarding the warranty provision, determining that the company had not linked the sale of its Motorcycles to the use of branded parts.

The consumers did not claim they were "unable to purchase a motorcycle without committing to buy Harley-Davidson parts," Griesbach noted.

In 2021, during the Biden administration, the Federal Trade Commission prioritized "right to repair" initiatives, pledging to increase enforcement efforts against unlawful repair limitations.

In 2022, Harley-Davidson settled an FTC lawsuit that accused the company of unlawfully restricting buyers' repair freedoms.

In the FTC settlement, Harley-Davidson committed not to nullify warranties for customers who had utilized authorized service centers or third-party parts. The company, however, did not acknowledge any wrongdoing as part of the settlement. Harley-Davidson clarified that the resolution of the FTC's case does not affect the ongoing private civil lawsuit.

The case is titled "Harley-Davidson Aftermarket Parts Marketing, Sales Practices, and Antitrust Litigation," and it is being heard in the U.S. District Court for the Eastern District of Wisconsin under case number 2:23-md-03064-WCG.