The Alliance of Automotive Service Providers of Minnesota (AASP-MN) has filed a formal
complaint with the Minnesota Department of Commerce requesting timely administrative and/or legal action to prevent State Farm from mandating that repair shops use the PartsTrader parts procurement system.
The Complaint and Request for Relief is based on State Farm’s violation of Minn. Stat. § 72B.092, subd. 1(6). This provision, enacted in 2007, prohibits insurers from specifying “…the use of a particular vendor for the procurement of parts or other materials necessary for the satisfactory repair of the vehicle.” The complaint states that the mandated use of PartsTrader restricts market options for parts procurement, and therefore should be prohibited as intended by the legislature.
For more than a year, AASP-MN has corresponded and met with Department of Commerce officials to express concerns regarding the mandated use of PartsTrader in other states. According to AASP-MN, the department was reluctant to act until State Farm indicated its intention to implement PartsTrader in Minnesota.
AASP-MN is also pursuing this issue with the office of the Attorney General. Information has been transmitted to the appropriate officials to request that they work with, or in lieu of, the Department of Commerce to prohibit the implementation of PartsTrader as a violation of Minnesota Statute. In addition, AASP-MN has consulted with legal counsel to identify possible causes of action that could be brought before a court.
In May of 2012, AASP was among the first industry associations to go on record stating that State Farm’s newly-mandated bidding process for parts procurement was an unprecedented and uninvited intrusion into the business of collision repair. AASP-MN says its efforts reinforce that position and are intended to protect the interests of the collision repair industry and give voice to its concerns.
More information:
