Update: This case has been transferred to the Eastern District of Wisconsin, for which a consolidated amended complaint was filed on May 15, 2023.
On January 23, 2023, FeganScott filed a class action lawsuit on behalf of Harley-Davidson motorcycle owners alleging the manufacturer operated an unlawful anticompetitive scheme that allowed it to charge customers supracompetitive prices for its replacement parts.
The suit alleges that Harley-Davidson conditioned its warranty on the use of Harley-Davidson replacement parts in violation of antitrust laws. This illegal tying scheme suppressed competition by deterring dealers from stocking third party compatible parts and disincentivizing motorcycle owners from buying and using such parts at the risk of voiding the warranty. As a result, Harley-Davidson owners were forced to pay higher prices for Harley-Davidson compatible parts.
In June 2022, the Federal Trade Commission (“FTC”) found Harley-Davidson’s practice of using its warranty to force owners to use its own parts violated the Magnuson-Moss Warranty Act and the FTC Act. The FTC ordered the manufacturer to put an immediate end to its deceptive practices and recognize consumers’ right to repair, including the use of third-party parts without worry of voiding their warranty.
However, for Harley-Davidson owners, including the named plaintiffs in this case, the FTC’s order does not allow them to recover damages. Through this suit, FeganScott seeks to recoup damages incurred by the plaintiffs for overpayment of Harley-Davidson-branded parts.