Governor Gavin Newsom recently approved California's SB 244, also referred to as the Right to Repair Act, positioning California as a pivotal state advocating for comprehensive electronics or appliance repair rights. Effective on July 1, 2024, the legislation will have profound implications for consumers, independent service repair facilities, and electronics and appliance manufacturers.

The Right to Repair Act follows in the footsteps of similar laws in several other states. In December of 2022, New York signed into law the Digital Fair Repair Act, which requires original equipment manufacturers (OEMs) to make available to independent repair providers and consumers the same diagnostic and repair information that is available to authorized repair providers. Shortly thereafter, Minnesota and Colorado followed suit. The Minnesota law follows New York's in many respects but requires OEMs to make parts and documentation available to consumers regardless of whether they are also made available to authorized repair providers. Colorado's version of the law has similar requirements to Minnesota's law, but mainly applies to farming equipment.

The European Union took a different approach. Rather than forcing OEMs to provide parts and documentation to consumers and independent repair providers, the EU law imposes an obligation on all entities providing repairs to repair certain goods (household washing machines, dishwashers, refrigerators, and electronic displays) if the goods meet repairability requirements spelled out in other EU legislation. Notably, mobile phones, cordless phones, and tablets are forecasted as the next set of goods to carry repairability obligations for manufacturers.

Compared to these previously enacted laws, California's Right to Repair Act most closely resembles that of Minnesota.

Changes from Previous Obligations

  • Self-service. Currently, under the Song-Beverly Consumer Warranty Act, similar obligations are imposed on manufacturers, but the documentation and parts need only be shared with service providers. Under the Right to Repair Act, consumers will have direct access to the documentation, parts, and tools.
  • Greater coverage of electronics and appliances. The Song-Beverly Consumer Warranty Act imposes obligations on manufacturers only for electronics or appliances carrying an express warranty from the manufacturer. The Right to Repair Act removes the requirement of an express warranty as a prerequisite.

Key Provisions of the Right to Repair Act

  • Manufacturers' obligations. Central to the act is the directive compelling manufacturers to provide, on fair and reasonable terms, consumers, service and repair facilities, and service dealers with both sufficient documentation and functional parts and tools (including updates) to diagnose, maintain, or repair electronics and appliances. That directive applies to a wide range of electronics and appliances that are sold in California, from smartphones and tablets to laptops and televisions. The directive only applies to products with minimum retail prices ranging from $50 to $99.99 or greater than $100, depending on the product. Products related to infrastructure (e.g., agricultural, utility, industrial, mining, outdoor power, and garden equipment), alarm systems, and video game consoles are excluded.
  • Requirements for documentation. The act requires OEMs to provide sufficient documentation, including manuals, diagrams, reporting output, service code descriptions, and other materials that the OEM uses or provides to an authorized repair provider to diagnose, maintain, or repair the product.
  • Requirements for parts and tools. The act also requires OEMs to provide functional parts for their products, including replacement parts or an assembly of parts, both new and used, that a manufacturer makes available to authorized repair providers. Tools include hardware and software for diagnosis, maintenance, repair, calibration, or restoration of operability for electronics or appliances.
  • Requirements for fair and reasonable terms. Manufacturers must offer documentation, tools, and parts on the most favorable terms with which the same were provided to an authorized repair provider. If a manufacturer does not use an authorized repair provider, then documentation, tools, and parts must be offered at cost (not including research and development (R&D) expenses).
  • Length of obligations. If the electronics or appliances are sold for $50 to $99.99, the OEM's obligations last for three years from the date the last model or type was manufactured. If the electronics or appliances are sold for more than $100, the OEM's obligation lasts for seven years from the date the last model or type was manufactured.
  • Exceptions to manufacturers' obligations. Manufacturers that provide equivalent or better, readily available replacements to consumers for free are not required to provide documentation, tools, or parts to anyone. Additionally, manufacturers are not required to divulge trade secrets, license any intellectual property (IP), or distribute the source code for any electronics or appliances.

Service providers' obligations. Service providers that are not authorized dealers must provide written notice to consumers informing the consumer that it is not an authorized dealer prior to servicing any electronics or appliances. And such service providers must disclose if non-OEM replacement parts will be utilized.

Takeaways

The Right to Repair Act underscores California's commitment to ensuring that consumers are provided reasonable options and fosters a competitive service provider industry. However, the act has its boundaries. It does not encompass every electronic product or appliance, nor does it mandate unrestricted access to all repair resources of a manufacturer. Nonetheless, it gives consumers and service providers sufficient knowledge and substance to participate and compete in the service provider industry.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.