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

  • Camden CM-221 Series Switches

    Camden CM-221 Series Switches

    Camden Door Controls is pleased to announce that, in response to soaring customer demand, it has expanded its range of ValueWave™ no-touch switches to include a narrow (slimline) version with manual override. This override button is designed to provide additional assurance that the request to exit switch will open a door, even if the no-touch sensor fails to operate. This new slimline switch also features a heavy gauge stainless steel faceplate, a red/green illuminated light ring, and is IP65 rated, making it ideal for indoor or outdoor use as part of an automatic door or access control system. ValueWave™ no-touch switches are designed for easy installation and trouble-free service in high traffic applications. In addition to this narrow version, the CM-221 & CM-222 Series switches are available in a range of other models with single and double gang heavy-gauge stainless steel faceplates and include illuminated light rings.

  • Luma x20

    Luma x20

    Snap One has announced its popular Luma x20 family of surveillance products now offers even greater security and privacy for home and business owners across the globe by giving them full control over integrators’ system access to view live and recorded video. According to Snap One Product Manager Derek Webb, the new “customer handoff” feature provides enhanced user control after initial installation, allowing the owners to have total privacy while also making it easy to reinstate integrator access when maintenance or assistance is required. This new feature is now available to all Luma x20 users globally. “The Luma x20 family of surveillance solutions provides excellent image and audio capture, and with the new customer handoff feature, it now offers absolute privacy for camera feeds and recordings,” Webb said. “With notifications and integrator access controlled through the powerful OvrC remote system management platform, it’s easy for integrators to give their clients full control of their footage and then to get temporary access from the client for any troubleshooting needs.”

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions.