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

New Products

  • PE80 Series

    PE80 Series by SARGENT / ED4000/PED5000 Series by Corbin Russwin

    ASSA ABLOY, a global leader in access solutions, has announced the launch of two next generation exit devices from long-standing leaders in the premium exit device market: the PE80 Series by SARGENT and the PED4000/PED5000 Series by Corbin Russwin. These new exit devices boast industry-first features that are specifically designed to provide enhanced safety, security and convenience, setting new standards for exit solutions. The SARGENT PE80 and Corbin Russwin PED4000/PED5000 Series exit devices are engineered to meet the ever-evolving needs of modern buildings. Featuring the high strength, security and durability that ASSA ABLOY is known for, the new exit devices deliver several innovative, industry-first features in addition to elegant design finishes for every opening.

  • 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.

  • EasyGate SPT and SPD

    EasyGate SPT SPD

    Security solutions do not have to be ordinary, let alone unattractive. Having renewed their best-selling speed gates, Cominfo has once again demonstrated their Art of Security philosophy in practice — and confirmed their position as an industry-leading manufacturers of premium speed gates and turnstiles.