ESA Discusses Fair Repair Act and its Potential Consequences for Alarm System Companies

A federal bill was filed on March 14, 2022 that could alter the contracts and practices of electronic security and life safety companies across the country, if passed. S. 3830 is titled the “Fair Repair Act” and was filed with bipartisan sponsors (Senator Ben Ray Lujan (D-NM) and Senator Cynthia Lummis (R-WY).

As filed the bill would require original equipment manufacturers (OEM) of digital electronic equipment to make documentation, diagnostic and repair information available to independent repair providers and owners of such equipment under fair and reasonable terms. We have seen many similar bills filed in states across the country, but few have reached any level of success. This bill would set up a federal requirement with enforcement delegated to the Federal Trade Commission (FTC).

Language in this bill could force alarm companies to alter their practices and ultimately create problems with alarm contracts as well. Here’s why – “Digital electronic equipment” is defined as any product that depends for its functioning, in whole or in part, on digital electronics embedded in or attached to the product. That definition would tend to include alarm panels.

Next, security-related functions are NOT excluded from the requirements of this bill. As written, this language states:

For digital electronic equipment that contains an electronic security lock or other security-related function, the original equipment manufacturer shall make available to the owner and to independent repair providers, on fair and reasonable terms, any special documentation, tools, and parts needed to disable the lock or function, and to reset it when disabled in the course of diagnosis, maintenance, or repair of the equipment.

It is also important at this stage to determine how the OEM is defined in the bill. Here it is –

“The term “original equipment manufacturer” or “OEM” means any person who is engaged in the business of selling, leasing, or otherwise supplying new digital electronic equipment or parts of equipment manufactured by or on behalf of itself, to any person.”

When we combine the definition of OEM with other provisions in this bill, a number of questions and concerns are immediately raised. Are the proprietary lockout codes of alarm panels, their use and their need to maintain electronic security systems now subject to being “open” for use by end users and independent repair facilities? Will the OEM code be used, or could it be used to take over alarm systems under contract? Many more questions could follow.

What is not known and cannot be known until the bill is passed and enacted is how some of the terms and definitions within it would be interpreted by the FTC. This is always the case with federal legislation as Congress has an intended propensity to keep some things vague in bills and leave massive details to the regulatory agencies.

Featured

  • Tradeshow Work Can Be Fun

    While at ISC West last week, I ran into numerous friends and associates all of which was a pleasant experience. The first question always seemed to be, “How many does this make for you?” Read Now

    • Industry Events
    • ISC West
  • New Report Says 1 in 5 SMBs Would Be Forced to Shutter After Successful Cyberattack

    Small and medium-sized businesses (SMBs) play a crucial role in the U.S. economy, making up 99.9% of all businesses and contributing to half of the nation's GDP. However, these vital economic growth drivers face an escalating threat—cyberattacks that could put them out of business. Read Now

  • The Yellow Brick Road

    The road to and throughout Wednesday's and Thursday's ISC West was crowded but it was amazing. Read Now

    • Industry Events
    • ISC West
  • An Inside Look From Napco at ISC West

    Get a look into the excitement at ISC West 2025 from Napco. Hear from some of their top-tech executives live from the show floor. Read Now

    • Industry Events
    • ISC West
  • Upping the Ante

    I am not a betting man in terms of cards, dice, blackjack or that wheel with the black marble racing around the circumference of a spinning wheel, but I would bet on the success of ISC West this year. Read Now

    • Industry Events
    • ISC West

New Products

  • 4K Video Decoder

    3xLOGIC’s VH-DECODER-4K is perfect for use in organizations of all sizes in diverse vertical sectors such as retail, leisure and hospitality, education and commercial premises.

  • FEP GameChanger

    FEP GameChanger

    Paige Datacom Solutions Introduces Important and Innovative Cabling Products GameChanger Cable, a proven and patented solution that significantly exceeds the reach of traditional category cable will now have a FEP/FEP construction.

  • Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

    Connect ONE®

    Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.