Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Department of Justice (DOJ) to investigate a recently aired CNN report’s allegation that auto insurers may possibly be pressuring customers to repair their vehicles at the insurers’ preferred repair shops.

“Contrary to what customers might be led to think by their insurers, repair shops preferred by insurers do not necessarily equate with quality repairs,” Blumenthal wrote in a letter sent to U.S. Attorney Basic Eric Holder last Friday.

“It seems to be frequent information amongst auto repair shops that the ideal way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, good quality service, but by agreeing to charge under-marketplace labor rates and use less expensive, salvaged, employed, or even counterfeit components of questionable quality and security,” Blumenthal wrote.

“Unfortunately, a lot of consumers are also getting misled into thinking that they are required to have their vehicle repaired at a single of these shops,” Blumenthal wrote in the letter. “This has the harmful impact of limiting consumer decision, creating a serious security danger, and suppressing competitors in the auto repair market.”

The following is the complete text of Blumenthal’s Feb. 20 letter to Attorney General Holder:

The Honorable Eric Holder

Attorney Basic of the United States

Robert F. Kennedy Building

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Lawyer Basic Holder:

As a longtime advocate of customer choice, I create to bring to your consideration to troubling new proof that our nation’s best auto insurers continue to engage in anticompetitive and possibly illegal tactics to stress customers into repairing their vehicles at insurer-preferred repair shops. As uncovered in a particular investigation featured on Anderson Cooper 360 Wednesday evening, insurance coverage steering not only undermines a basic consumer proper, but can also compromise the safety of cars on our nation’s roads—endangering motorists and their passengers.

I urge the Department of Justice (DOJ) to immediately investigate such practices by the auto insurance industry and act swiftly to protect the security of shoppers and preserve competitors in the auto repair market.

As junk yard, remanufactured, and employed parts of substandard high quality turn into increasingly widely offered, auto insurers are adopting alarming new approaches to save cash at the expense of customer safety. Contrary to what customers may be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with high quality repairs. It seems to be typical information among auto repair shops that the best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, quality service, but by agreeing to charge beneath-industry labor rates and use cheaper, salvaged, utilized, or even counterfeit parts of questionable high quality and safety. Unfortunately, numerous shoppers are also being misled into pondering that they are required to have their automobile repaired at 1 of these shops. This has the dangerous impact of limiting customer option, making a critical security threat, and suppressing competition in the auto repair business.

According to a 1963 consent decree with the DOJ, a quantity of insurers have been ordered to cease: “sponsoring any appraiser directing, advising or otherwise suggesting any particular person or firm do organization with any independent or dealer-franchised automotive repair shop exercising handle more than the activities of any appraiser and fixing or otherwise controlling the prices charged by automotive repair shops for the repair of damage to the vehicle or for labor in connection therewith, by use of a flat price.” More than 50 years have given that passed, and shoppers and auto repairers possibly remain victims of the quite very same misconduct insurers have been directed to cease doing decades ago.

I urge the DOJ to investigate and make a determination as to regardless of whether such practices violate the 1963 consent order or any other current federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts among insurance organizations and facilities listed in their direct repair applications or preferred lists. I would also like to request an update concerning DOJ’s understanding of the existing signatories of the 1963 consent decree and whether they continue to be bound by the consent decree in light of company transactions in the years since the decree was signed.

Thank you in advance for your prompt focus to this important matter harming buyers and the auto repair industry, and compromising vehicle security.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Related Articles:

• West Virginia Judge Dismisses Components Suit Against Body Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm Over Auto Repair Practices


• Indiana Physique Shops Sue Insurers over Compensation for Automobile Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Department of Justice (DOJ) to investigate a lately aired CNN report’s allegation that auto insurers may possibly be pressuring buyers to repair their cars at the insurers’ preferred repair shops.

“Contrary to what shoppers may be led to think by their insurers, repair shops preferred by insurers do not necessarily equate with top quality repairs,” Blumenthal wrote in a letter sent to U.S. Attorney Basic Eric Holder final Friday.

“It appears to be frequent expertise among auto repair shops that the greatest way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, quality service, but by agreeing to charge beneath-marketplace labor rates and use more affordable, salvaged, employed, or even counterfeit components of questionable high quality and security,” Blumenthal wrote.

“Unfortunately, numerous buyers are also getting misled into pondering that they are essential to have their car repaired at one particular of these shops,” Blumenthal wrote in the letter. “This has the harmful impact of limiting customer decision, making a critical security threat, and suppressing competition in the auto repair market.”

The following is the complete text of Blumenthal’s Feb. 20 letter to Lawyer General Holder:

The Honorable Eric Holder

Attorney Common of the United States

Robert F. Kennedy Creating

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Attorney Common Holder:

As a longtime advocate of consumer choice, I write to bring to your focus to troubling new evidence that our nation’s top auto insurers continue to engage in anticompetitive and possibly illegal tactics to stress customers into repairing their cars at insurer-preferred repair shops. As uncovered in a particular investigation featured on Anderson Cooper 360 Wednesday evening, insurance steering not only undermines a standard customer right, but can also compromise the security of automobiles on our nation’s roads—endangering motorists and their passengers.

I urge the Division of Justice (DOJ) to instantly investigate such practices by the auto insurance coverage business and act swiftly to protect the security of shoppers and preserve competitors in the auto repair sector.

As junk yard, remanufactured, and employed parts of substandard top quality turn out to be increasingly widely offered, auto insurers are adopting alarming new ways to save cash at the expense of customer safety. Contrary to what consumers might be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with good quality repairs. It seems to be frequent understanding amongst auto repair shops that the greatest way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, high quality service, but by agreeing to charge under-marketplace labor prices and use more affordable, salvaged, utilised, or even counterfeit components of questionable good quality and security. However, numerous shoppers are also getting misled into thinking that they are necessary to have their auto repaired at one particular of these shops. This has the harmful effect of limiting consumer selection, generating a critical safety danger, and suppressing competitors in the auto repair industry.

According to a 1963 consent decree with the DOJ, a quantity of insurers had been ordered to quit: “sponsoring any appraiser directing, advising or otherwise suggesting any person or firm do enterprise with any independent or dealer-franchised automotive repair shop exercising handle over the activities of any appraiser and fixing or otherwise controlling the costs charged by automotive repair shops for the repair of damage to the car or for labor in connection therewith, by use of a flat price.” Over 50 years have given that passed, and consumers and auto repairers possibly stay victims of the extremely exact same misconduct insurers were directed to quit doing decades ago.

I urge the DOJ to investigate and make a determination as to whether such practices violate the 1963 consent order or any other present federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts between insurance coverage companies and facilities listed in their direct repair programs or preferred lists. I would also like to request an update regarding DOJ’s understanding of the present signatories of the 1963 consent decree and regardless of whether they continue to be bound by the consent decree in light of company transactions in the years given that the decree was signed.

Thank you in advance for your prompt focus to this crucial matter harming consumers and the auto repair market, and compromising vehicle safety.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Connected Articles:

• West Virginia Judge Dismisses Parts Suit Against Physique Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm More than Auto Repair Practices


• Indiana Body Shops Sue Insurers more than Compensation for Automobile Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Division of Justice (DOJ) to investigate a lately aired CNN report’s allegation that auto insurers may possibly be pressuring shoppers to repair their automobiles at the insurers’ preferred repair shops.

“Contrary to what shoppers could be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with top quality repairs,” Blumenthal wrote in a letter sent to U.S. Attorney Common Eric Holder last Friday.

“It appears to be frequent information among auto repair shops that the greatest way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, top quality service, but by agreeing to charge under-market labor rates and use cheaper, salvaged, utilized, or even counterfeit parts of questionable good quality and security,” Blumenthal wrote.

“Unfortunately, numerous buyers are also being misled into pondering that they are required to have their car repaired at one particular of these shops,” Blumenthal wrote in the letter. “This has the harmful impact of limiting consumer choice, producing a critical safety danger, and suppressing competition in the auto repair business.”

The following is the full text of Blumenthal’s Feb. 20 letter to Lawyer Common Holder:

The Honorable Eric Holder

Lawyer Basic of the United States

Robert F. Kennedy Constructing

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Lawyer General Holder:

As a longtime advocate of consumer decision, I create to bring to your consideration to troubling new evidence that our nation’s top auto insurers continue to engage in anticompetitive and possibly illegal tactics to stress shoppers into repairing their automobiles at insurer-preferred repair shops. As uncovered in a special investigation featured on Anderson Cooper 360 Wednesday evening, insurance steering not only undermines a fundamental consumer appropriate, but can also compromise the security of autos on our nation’s roads—endangering motorists and their passengers.

I urge the Department of Justice (DOJ) to instantly investigate such practices by the auto insurance coverage industry and act swiftly to safeguard the safety of consumers and preserve competition in the auto repair industry.

As junk yard, remanufactured, and utilised components of substandard quality grow to be increasingly widely available, auto insurers are adopting alarming new ways to save money at the expense of customer security. Contrary to what customers may be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with high quality repairs. It seems to be widespread expertise amongst auto repair shops that the ideal way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, quality service, but by agreeing to charge beneath-market labor prices and use cheaper, salvaged, employed, or even counterfeit components of questionable good quality and safety. Sadly, many consumers are also getting misled into thinking that they are essential to have their auto repaired at one of these shops. This has the dangerous impact of limiting customer decision, creating a serious security threat, and suppressing competition in the auto repair business.

According to a 1963 consent decree with the DOJ, a number of insurers had been ordered to stop: “sponsoring any appraiser directing, advising or otherwise suggesting any person or firm do enterprise with any independent or dealer-franchised automotive repair shop exercising handle more than the activities of any appraiser and fixing or otherwise controlling the costs charged by automotive repair shops for the repair of harm to the car or for labor in connection therewith, by use of a flat rate.” Over 50 years have considering that passed, and consumers and auto repairers possibly stay victims of the very very same misconduct insurers were directed to quit undertaking decades ago.

I urge the DOJ to investigate and make a determination as to no matter whether such practices violate the 1963 consent order or any other present federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts between insurance coverage firms and facilities listed in their direct repair applications or preferred lists. I would also like to request an update concerning DOJ’s understanding of the existing signatories of the 1963 consent decree and whether they continue to be bound by the consent decree in light of business transactions in the years because the decree was signed.

Thank you in advance for your prompt interest to this important matter harming buyers and the auto repair sector, and compromising automobile security.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Associated Articles:

• West Virginia Judge Dismisses Components Suit Against Physique Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm Over Auto Repair Practices


• Indiana Body Shops Sue Insurers over Compensation for Automobile Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Department of Justice (DOJ) to investigate a lately aired CNN report’s allegation that auto insurers may be pressuring buyers to repair their automobiles at the insurers’ preferred repair shops.

“Contrary to what shoppers may be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with good quality repairs,” Blumenthal wrote in a letter sent to U.S. Lawyer General Eric Holder last Friday.

“It appears to be widespread understanding amongst auto repair shops that the greatest way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, top quality service, but by agreeing to charge beneath-market place labor rates and use less costly, salvaged, utilized, or even counterfeit parts of questionable quality and security,” Blumenthal wrote.

“Unfortunately, several consumers are also being misled into thinking that they are essential to have their auto repaired at a single of these shops,” Blumenthal wrote in the letter. “This has the harmful effect of limiting customer choice, generating a significant safety threat, and suppressing competition in the auto repair industry.”

The following is the full text of Blumenthal’s Feb. 20 letter to Attorney Basic Holder:

The Honorable Eric Holder

Attorney General of the United States

Robert F. Kennedy Creating

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Lawyer General Holder:

As a longtime advocate of consumer choice, I create to bring to your interest to troubling new evidence that our nation’s top auto insurers continue to engage in anticompetitive and possibly illegal tactics to stress consumers into repairing their autos at insurer-preferred repair shops. As uncovered in a specific investigation featured on Anderson Cooper 360 Wednesday evening, insurance steering not only undermines a standard customer appropriate, but can also compromise the security of automobiles on our nation’s roads—endangering motorists and their passengers.

I urge the Department of Justice (DOJ) to quickly investigate such practices by the auto insurance coverage industry and act swiftly to protect the safety of shoppers and preserve competitors in the auto repair business.

As junk yard, remanufactured, and utilized parts of substandard top quality become increasingly broadly available, auto insurers are adopting alarming new methods to save money at the expense of customer safety. Contrary to what customers may be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with quality repairs. It seems to be typical knowledge among auto repair shops that the best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, top quality service, but by agreeing to charge below-market labor rates and use less costly, salvaged, utilised, or even counterfeit parts of questionable good quality and security. However, many customers are also getting misled into considering that they are necessary to have their vehicle repaired at one particular of these shops. This has the harmful effect of limiting customer selection, making a significant security danger, and suppressing competition in the auto repair market.

According to a 1963 consent decree with the DOJ, a number of insurers had been ordered to stop: “sponsoring any appraiser directing, advising or otherwise suggesting any particular person or firm do organization with any independent or dealer-franchised automotive repair shop exercising control more than the activities of any appraiser and fixing or otherwise controlling the prices charged by automotive repair shops for the repair of damage to the automobile or for labor in connection therewith, by use of a flat rate.” More than 50 years have since passed, and buyers and auto repairers possibly stay victims of the quite identical misconduct insurers have been directed to quit undertaking decades ago.

I urge the DOJ to investigate and make a determination as to no matter whether such practices violate the 1963 consent order or any other existing federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts in between insurance coverage companies and facilities listed in their direct repair applications or preferred lists. I would also like to request an update relating to DOJ’s understanding of the present signatories of the 1963 consent decree and regardless of whether they continue to be bound by the consent decree in light of organization transactions in the years since the decree was signed.

Thank you in advance for your prompt interest to this essential matter harming customers and the auto repair sector, and compromising automobile safety.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Related Articles:

• West Virginia Judge Dismisses Parts Suit Against Physique Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm Over Auto Repair Practices


• Indiana Body Shops Sue Insurers over Compensation for Vehicle Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Department of Justice (DOJ) to investigate a lately aired CNN report’s allegation that auto insurers could be pressuring buyers to repair their cars at the insurers’ preferred repair shops.

“Contrary to what buyers may possibly be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with top quality repairs,” Blumenthal wrote in a letter sent to U.S. Lawyer Common Eric Holder final Friday.

“It appears to be common expertise among auto repair shops that the ideal way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, quality service, but by agreeing to charge beneath-market place labor prices and use less expensive, salvaged, utilised, or even counterfeit components of questionable good quality and safety,” Blumenthal wrote.

“Unfortunately, several buyers are also becoming misled into thinking that they are required to have their auto repaired at 1 of these shops,” Blumenthal wrote in the letter. “This has the damaging impact of limiting customer selection, creating a significant safety risk, and suppressing competition in the auto repair industry.”

The following is the full text of Blumenthal’s Feb. 20 letter to Attorney General Holder:

The Honorable Eric Holder

Attorney Basic of the United States

Robert F. Kennedy Constructing

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Lawyer Basic Holder:

As a longtime advocate of consumer decision, I write to bring to your interest to troubling new evidence that our nation’s leading auto insurers continue to engage in anticompetitive and possibly illegal techniques to stress buyers into repairing their automobiles at insurer-preferred repair shops. As uncovered in a particular investigation featured on Anderson Cooper 360 Wednesday evening, insurance coverage steering not only undermines a standard consumer proper, but can also compromise the safety of automobiles on our nation’s roads—endangering motorists and their passengers.

I urge the Division of Justice (DOJ) to right away investigate such practices by the auto insurance market and act swiftly to protect the security of buyers and preserve competitors in the auto repair business.

As junk yard, remanufactured, and utilised parts of substandard quality turn into increasingly widely available, auto insurers are adopting alarming new ways to save funds at the expense of customer security. Contrary to what shoppers might be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with top quality repairs. It appears to be typical understanding amongst auto repair shops that the very best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, top quality service, but by agreeing to charge beneath-market place labor prices and use more affordable, salvaged, employed, or even counterfeit components of questionable high quality and security. Unfortunately, a lot of consumers are also getting misled into pondering that they are required to have their automobile repaired at a single of these shops. This has the damaging impact of limiting consumer choice, producing a serious security threat, and suppressing competition in the auto repair industry.

According to a 1963 consent decree with the DOJ, a number of insurers had been ordered to quit: “sponsoring any appraiser directing, advising or otherwise suggesting any person or firm do organization with any independent or dealer-franchised automotive repair shop working out handle more than the activities of any appraiser and fixing or otherwise controlling the rates charged by automotive repair shops for the repair of damage to the vehicle or for labor in connection therewith, by use of a flat rate.” More than 50 years have since passed, and consumers and auto repairers possibly stay victims of the extremely identical misconduct insurers had been directed to stop undertaking decades ago.

I urge the DOJ to investigate and make a determination as to whether or not such practices violate the 1963 consent order or any other present federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts among insurance coverage businesses and facilities listed in their direct repair programs or preferred lists. I would also like to request an update regarding DOJ’s understanding of the existing signatories of the 1963 consent decree and whether or not they continue to be bound by the consent decree in light of enterprise transactions in the years since the decree was signed.

Thank you in advance for your prompt interest to this essential matter harming buyers and the auto repair business, and compromising car safety.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Associated Articles:

• West Virginia Judge Dismisses Parts Suit Against Body Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm Over Auto Repair Practices


• Indiana Body Shops Sue Insurers over Compensation for Automobile Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Department of Justice (DOJ) to investigate a lately aired CNN report’s allegation that auto insurers might be pressuring shoppers to repair their vehicles at the insurers’ preferred repair shops.

“Contrary to what customers may be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with top quality repairs,” Blumenthal wrote in a letter sent to U.S. Attorney Basic Eric Holder final Friday.

“It appears to be widespread understanding amongst auto repair shops that the best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, quality service, but by agreeing to charge below-marketplace labor rates and use more affordable, salvaged, utilized, or even counterfeit parts of questionable quality and security,” Blumenthal wrote.

“Unfortunately, a lot of buyers are also becoming misled into pondering that they are needed to have their auto repaired at one of these shops,” Blumenthal wrote in the letter. “This has the harmful effect of limiting consumer choice, generating a serious safety danger, and suppressing competitors in the auto repair industry.”

The following is the complete text of Blumenthal’s Feb. 20 letter to Lawyer Basic Holder:

The Honorable Eric Holder

Attorney Common of the United States

Robert F. Kennedy Building

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Lawyer Basic Holder:

As a longtime advocate of consumer choice, I write to bring to your interest to troubling new evidence that our nation’s prime auto insurers continue to engage in anticompetitive and possibly illegal tactics to stress shoppers into repairing their autos at insurer-preferred repair shops. As uncovered in a unique investigation featured on Anderson Cooper 360 Wednesday evening, insurance steering not only undermines a basic customer appropriate, but can also compromise the safety of autos on our nation’s roads—endangering motorists and their passengers.

I urge the Department of Justice (DOJ) to quickly investigate such practices by the auto insurance coverage industry and act swiftly to shield the safety of shoppers and preserve competition in the auto repair industry.

As junk yard, remanufactured, and used parts of substandard top quality become increasingly extensively obtainable, auto insurers are adopting alarming new approaches to save cash at the expense of consumer security. Contrary to what shoppers may possibly be led to think by their insurers, repair shops preferred by insurers do not necessarily equate with high quality repairs. It seems to be frequent expertise among auto repair shops that the very best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, high quality service, but by agreeing to charge below-marketplace labor prices and use less costly, salvaged, used, or even counterfeit components of questionable quality and safety. Regrettably, several shoppers are also being misled into considering that they are essential to have their auto repaired at one particular of these shops. This has the harmful effect of limiting consumer option, producing a severe security threat, and suppressing competitors in the auto repair business.

According to a 1963 consent decree with the DOJ, a number of insurers were ordered to quit: “sponsoring any appraiser directing, advising or otherwise suggesting any individual or firm do organization with any independent or dealer-franchised automotive repair shop working out control more than the activities of any appraiser and fixing or otherwise controlling the prices charged by automotive repair shops for the repair of harm to the automobile or for labor in connection therewith, by use of a flat rate.” Over 50 years have given that passed, and consumers and auto repairers possibly remain victims of the very identical misconduct insurers were directed to quit undertaking decades ago.

I urge the DOJ to investigate and make a determination as to regardless of whether such practices violate the 1963 consent order or any other current federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts among insurance companies and facilities listed in their direct repair applications or preferred lists. I would also like to request an update with regards to DOJ’s understanding of the present signatories of the 1963 consent decree and whether they continue to be bound by the consent decree in light of enterprise transactions in the years considering that the decree was signed.

Thank you in advance for your prompt interest to this critical matter harming consumers and the auto repair industry, and compromising automobile safety.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Related Articles:

• West Virginia Judge Dismisses Components Suit Against Body Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm More than Auto Repair Practices


• Indiana Physique Shops Sue Insurers over Compensation for Automobile Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Department of Justice (DOJ) to investigate a not too long ago aired CNN report’s allegation that auto insurers might be pressuring customers to repair their cars at the insurers’ preferred repair shops.

“Contrary to what buyers may be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with good quality repairs,” Blumenthal wrote in a letter sent to U.S. Attorney General Eric Holder last Friday.

“It appears to be typical knowledge among auto repair shops that the greatest way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, good quality service, but by agreeing to charge beneath-market labor prices and use more affordable, salvaged, utilized, or even counterfeit components of questionable top quality and security,” Blumenthal wrote.

“Unfortunately, many consumers are also becoming misled into pondering that they are essential to have their auto repaired at one particular of these shops,” Blumenthal wrote in the letter. “This has the dangerous impact of limiting customer option, creating a significant security risk, and suppressing competitors in the auto repair business.”

The following is the complete text of Blumenthal’s Feb. 20 letter to Attorney Basic Holder:

The Honorable Eric Holder

Lawyer General of the United States

Robert F. Kennedy Creating

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Attorney Common Holder:

As a longtime advocate of consumer selection, I create to bring to your interest to troubling new proof that our nation’s prime auto insurers continue to engage in anticompetitive and possibly illegal tactics to pressure customers into repairing their automobiles at insurer-preferred repair shops. As uncovered in a special investigation featured on Anderson Cooper 360 Wednesday evening, insurance steering not only undermines a fundamental customer appropriate, but can also compromise the security of vehicles on our nation’s roads—endangering motorists and their passengers.

I urge the Department of Justice (DOJ) to quickly investigate such practices by the auto insurance sector and act swiftly to protect the safety of customers and preserve competition in the auto repair business.

As junk yard, remanufactured, and used parts of substandard high quality turn out to be increasingly widely available, auto insurers are adopting alarming new ways to save money at the expense of customer security. Contrary to what consumers could be led to think by their insurers, repair shops preferred by insurers do not necessarily equate with high quality repairs. It seems to be widespread expertise amongst auto repair shops that the very best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, good quality service, but by agreeing to charge below-market place labor rates and use cheaper, salvaged, utilised, or even counterfeit parts of questionable quality and safety. Unfortunately, a lot of consumers are also getting misled into pondering that they are necessary to have their vehicle repaired at one particular of these shops. This has the damaging impact of limiting consumer option, producing a severe safety danger, and suppressing competition in the auto repair market.

According to a 1963 consent decree with the DOJ, a quantity of insurers had been ordered to stop: “sponsoring any appraiser directing, advising or otherwise suggesting any person or firm do business with any independent or dealer-franchised automotive repair shop exercising handle more than the activities of any appraiser and fixing or otherwise controlling the prices charged by automotive repair shops for the repair of harm to the car or for labor in connection therewith, by use of a flat rate.” Over 50 years have given that passed, and shoppers and auto repairers possibly stay victims of the very exact same misconduct insurers were directed to quit performing decades ago.

I urge the DOJ to investigate and make a determination as to no matter whether such practices violate the 1963 consent order or any other current federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts in between insurance coverage companies and facilities listed in their direct repair programs or preferred lists. I would also like to request an update concerning DOJ’s understanding of the existing signatories of the 1963 consent decree and regardless of whether they continue to be bound by the consent decree in light of business transactions in the years considering that the decree was signed.

Thank you in advance for your prompt focus to this essential matter harming shoppers and the auto repair industry, and compromising automobile security.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Connected Articles:

• West Virginia Judge Dismisses Parts Suit Against Physique Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm More than Auto Repair Practices


• Indiana Body Shops Sue Insurers more than Compensation for Automobile Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Department of Justice (DOJ) to investigate a recently aired CNN report’s allegation that auto insurers could be pressuring customers to repair their automobiles at the insurers’ preferred repair shops.

“Contrary to what consumers might be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with quality repairs,” Blumenthal wrote in a letter sent to U.S. Lawyer Common Eric Holder last Friday.

“It appears to be frequent knowledge amongst auto repair shops that the best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, good quality service, but by agreeing to charge under-marketplace labor rates and use less costly, salvaged, utilized, or even counterfeit components of questionable quality and safety,” Blumenthal wrote.

“Unfortunately, many buyers are also becoming misled into thinking that they are necessary to have their car repaired at one particular of these shops,” Blumenthal wrote in the letter. “This has the damaging impact of limiting consumer choice, generating a serious safety threat, and suppressing competition in the auto repair business.”

The following is the full text of Blumenthal’s Feb. 20 letter to Attorney General Holder:

The Honorable Eric Holder

Attorney Basic of the United States

Robert F. Kennedy Constructing

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Lawyer General Holder:

As a longtime advocate of consumer option, I create to bring to your consideration to troubling new evidence that our nation’s prime auto insurers continue to engage in anticompetitive and possibly illegal tactics to pressure consumers into repairing their automobiles at insurer-preferred repair shops. As uncovered in a specific investigation featured on Anderson Cooper 360 Wednesday evening, insurance steering not only undermines a simple customer correct, but can also compromise the safety of cars on our nation’s roads—endangering motorists and their passengers.

I urge the Department of Justice (DOJ) to right away investigate such practices by the auto insurance coverage sector and act swiftly to protect the security of consumers and preserve competition in the auto repair market.

As junk yard, remanufactured, and utilized parts of substandard high quality become increasingly widely available, auto insurers are adopting alarming new ways to save funds at the expense of customer safety. Contrary to what buyers may be led to think by their insurers, repair shops preferred by insurers do not necessarily equate with quality repairs. It seems to be frequent knowledge among auto repair shops that the very best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, top quality service, but by agreeing to charge under-market labor prices and use less expensive, salvaged, employed, or even counterfeit components of questionable top quality and safety. Regrettably, numerous customers are also getting misled into thinking that they are essential to have their automobile repaired at one of these shops. This has the damaging impact of limiting consumer selection, generating a serious security danger, and suppressing competitors in the auto repair market.

According to a 1963 consent decree with the DOJ, a number of insurers had been ordered to stop: “sponsoring any appraiser directing, advising or otherwise suggesting any particular person or firm do organization with any independent or dealer-franchised automotive repair shop working out handle more than the activities of any appraiser and fixing or otherwise controlling the prices charged by automotive repair shops for the repair of damage to the automobile or for labor in connection therewith, by use of a flat rate.” Over 50 years have since passed, and customers and auto repairers possibly remain victims of the very identical misconduct insurers have been directed to cease performing decades ago.

I urge the DOJ to investigate and make a determination as to whether such practices violate the 1963 consent order or any other existing federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts between insurance coverage firms and facilities listed in their direct repair programs or preferred lists. I would also like to request an update with regards to DOJ’s understanding of the existing signatories of the 1963 consent decree and whether they continue to be bound by the consent decree in light of company transactions in the years since the decree was signed.

Thank you in advance for your prompt focus to this important matter harming customers and the auto repair sector, and compromising car safety.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Connected Articles:

• West Virginia Judge Dismisses Components Suit Against Physique Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm More than Auto Repair Practices


• Indiana Physique Shops Sue Insurers more than Compensation for Automobile Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Department of Justice (DOJ) to investigate a recently aired CNN report’s allegation that auto insurers may possibly be pressuring customers to repair their autos at the insurers’ preferred repair shops.

“Contrary to what buyers might be led to think by their insurers, repair shops preferred by insurers do not necessarily equate with high quality repairs,” Blumenthal wrote in a letter sent to U.S. Lawyer Common Eric Holder final Friday.

“It seems to be frequent information amongst auto repair shops that the very best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, quality service, but by agreeing to charge under-marketplace labor prices and use cheaper, salvaged, utilised, or even counterfeit parts of questionable top quality and security,” Blumenthal wrote.

“Unfortunately, several buyers are also becoming misled into considering that they are essential to have their auto repaired at a single of these shops,” Blumenthal wrote in the letter. “This has the dangerous impact of limiting customer choice, producing a serious security threat, and suppressing competitors in the auto repair business.”

The following is the full text of Blumenthal’s Feb. 20 letter to Lawyer Basic Holder:

The Honorable Eric Holder

Attorney Basic of the United States

Robert F. Kennedy Constructing

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Lawyer Common Holder:

As a longtime advocate of consumer choice, I create to bring to your attention to troubling new proof that our nation’s leading auto insurers continue to engage in anticompetitive and possibly illegal techniques to pressure buyers into repairing their autos at insurer-preferred repair shops. As uncovered in a particular investigation featured on Anderson Cooper 360 Wednesday evening, insurance steering not only undermines a fundamental customer proper, but can also compromise the safety of automobiles on our nation’s roads—endangering motorists and their passengers.

I urge the Division of Justice (DOJ) to immediately investigate such practices by the auto insurance coverage market and act swiftly to shield the safety of customers and preserve competitors in the auto repair industry.

As junk yard, remanufactured, and used parts of substandard top quality turn out to be increasingly widely available, auto insurers are adopting alarming new ways to save funds at the expense of customer safety. Contrary to what shoppers might be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with high quality repairs. It seems to be widespread knowledge amongst auto repair shops that the best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, high quality service, but by agreeing to charge below-market place labor rates and use less expensive, salvaged, used, or even counterfeit parts of questionable top quality and security. Regrettably, a lot of consumers are also getting misled into considering that they are necessary to have their vehicle repaired at a single of these shops. This has the damaging effect of limiting consumer choice, creating a significant safety threat, and suppressing competitors in the auto repair business.

According to a 1963 consent decree with the DOJ, a number of insurers were ordered to cease: “sponsoring any appraiser directing, advising or otherwise suggesting any particular person or firm do business with any independent or dealer-franchised automotive repair shop working out control over the activities of any appraiser and fixing or otherwise controlling the rates charged by automotive repair shops for the repair of damage to the vehicle or for labor in connection therewith, by use of a flat price.” Over 50 years have since passed, and buyers and auto repairers possibly stay victims of the very identical misconduct insurers were directed to stop performing decades ago.

I urge the DOJ to investigate and make a determination as to whether such practices violate the 1963 consent order or any other present federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts amongst insurance coverage companies and facilities listed in their direct repair applications or preferred lists. I would also like to request an update regarding DOJ’s understanding of the current signatories of the 1963 consent decree and regardless of whether they continue to be bound by the consent decree in light of enterprise transactions in the years given that the decree was signed.

Thank you in advance for your prompt consideration to this critical matter harming consumers and the auto repair business, and compromising car security.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Connected Articles:

• West Virginia Judge Dismisses Components Suit Against Body Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm More than Auto Repair Practices


• Indiana Physique Shops Sue Insurers over Compensation for Vehicle Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Department of Justice (DOJ) to investigate a not too long ago aired CNN report’s allegation that auto insurers may be pressuring customers to repair their cars at the insurers’ preferred repair shops.

“Contrary to what customers may possibly be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with good quality repairs,” Blumenthal wrote in a letter sent to U.S. Lawyer General Eric Holder last Friday.

“It appears to be typical knowledge among auto repair shops that the ideal way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, top quality service, but by agreeing to charge beneath-market place labor prices and use more affordable, salvaged, utilized, or even counterfeit components of questionable good quality and safety,” Blumenthal wrote.

“Unfortunately, several shoppers are also getting misled into thinking that they are needed to have their auto repaired at a single of these shops,” Blumenthal wrote in the letter. “This has the dangerous impact of limiting customer option, producing a critical safety threat, and suppressing competition in the auto repair business.”

The following is the full text of Blumenthal’s Feb. 20 letter to Attorney General Holder:

The Honorable Eric Holder

Attorney Basic of the United States

Robert F. Kennedy Developing

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Attorney Common Holder:

As a longtime advocate of customer selection, I create to bring to your consideration to troubling new proof that our nation’s prime auto insurers continue to engage in anticompetitive and possibly illegal tactics to stress shoppers into repairing their automobiles at insurer-preferred repair shops. As uncovered in a unique investigation featured on Anderson Cooper 360 Wednesday evening, insurance steering not only undermines a simple consumer appropriate, but can also compromise the safety of cars on our nation’s roads—endangering motorists and their passengers.

I urge the Division of Justice (DOJ) to quickly investigate such practices by the auto insurance coverage market and act swiftly to shield the safety of customers and preserve competition in the auto repair industry.

As junk yard, remanufactured, and employed components of substandard high quality turn into increasingly widely obtainable, auto insurers are adopting alarming new techniques to save funds at the expense of consumer safety. Contrary to what buyers might be led to think by their insurers, repair shops preferred by insurers do not necessarily equate with high quality repairs. It appears to be frequent knowledge among auto repair shops that the greatest way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, high quality service, but by agreeing to charge under-market labor prices and use more affordable, salvaged, employed, or even counterfeit components of questionable high quality and safety. Unfortunately, a lot of consumers are also getting misled into pondering that they are needed to have their car repaired at one of these shops. This has the harmful effect of limiting customer option, generating a serious safety threat, and suppressing competition in the auto repair industry.

According to a 1963 consent decree with the DOJ, a number of insurers have been ordered to quit: “sponsoring any appraiser directing, advising or otherwise suggesting any particular person or firm do company with any independent or dealer-franchised automotive repair shop working out manage over the activities of any appraiser and fixing or otherwise controlling the rates charged by automotive repair shops for the repair of harm to the car or for labor in connection therewith, by use of a flat rate.” More than 50 years have because passed, and buyers and auto repairers possibly remain victims of the really exact same misconduct insurers were directed to quit undertaking decades ago.

I urge the DOJ to investigate and make a determination as to regardless of whether such practices violate the 1963 consent order or any other present federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts in between insurance organizations and facilities listed in their direct repair applications or preferred lists. I would also like to request an update relating to DOJ’s understanding of the existing signatories of the 1963 consent decree and whether they continue to be bound by the consent decree in light of business transactions in the years because the decree was signed.

Thank you in advance for your prompt focus to this critical matter harming buyers and the auto repair business, and compromising vehicle safety.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Connected Articles:

• West Virginia Judge Dismisses Components Suit Against Physique Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm Over Auto Repair Practices


• Indiana Body Shops Sue Insurers over Compensation for Car Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Division of Justice (DOJ) to investigate a lately aired CNN report’s allegation that auto insurers might be pressuring consumers to repair their autos at the insurers’ preferred repair shops.

“Contrary to what customers might be led to think by their insurers, repair shops preferred by insurers do not necessarily equate with quality repairs,” Blumenthal wrote in a letter sent to U.S. Attorney General Eric Holder final Friday.

“It seems to be typical information among auto repair shops that the best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, high quality service, but by agreeing to charge under-market labor rates and use less costly, salvaged, employed, or even counterfeit parts of questionable high quality and security,” Blumenthal wrote.

“Unfortunately, several buyers are also getting misled into considering that they are required to have their auto repaired at 1 of these shops,” Blumenthal wrote in the letter. “This has the damaging impact of limiting customer selection, generating a critical safety threat, and suppressing competitors in the auto repair business.”

The following is the complete text of Blumenthal’s Feb. 20 letter to Attorney Basic Holder:

The Honorable Eric Holder

Attorney Basic of the United States

Robert F. Kennedy Developing

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Lawyer General Holder:

As a longtime advocate of consumer choice, I write to bring to your interest to troubling new evidence that our nation’s leading auto insurers continue to engage in anticompetitive and possibly illegal tactics to pressure buyers into repairing their cars at insurer-preferred repair shops. As uncovered in a specific investigation featured on Anderson Cooper 360 Wednesday evening, insurance steering not only undermines a basic customer correct, but can also compromise the security of vehicles on our nation’s roads—endangering motorists and their passengers.

I urge the Division of Justice (DOJ) to instantly investigate such practices by the auto insurance market and act swiftly to defend the security of buyers and preserve competitors in the auto repair market.

As junk yard, remanufactured, and used components of substandard high quality become increasingly broadly accessible, auto insurers are adopting alarming new techniques to save cash at the expense of customer security. Contrary to what customers might be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with high quality repairs. It appears to be frequent expertise among auto repair shops that the best way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, good quality service, but by agreeing to charge beneath-marketplace labor rates and use cheaper, salvaged, utilised, or even counterfeit parts of questionable good quality and security. Unfortunately, many consumers are also getting misled into thinking that they are required to have their vehicle repaired at one of these shops. This has the damaging impact of limiting consumer choice, creating a significant security danger, and suppressing competition in the auto repair industry.

According to a 1963 consent decree with the DOJ, a number of insurers have been ordered to stop: “sponsoring any appraiser directing, advising or otherwise suggesting any individual or firm do enterprise with any independent or dealer-franchised automotive repair shop working out control over the activities of any appraiser and fixing or otherwise controlling the costs charged by automotive repair shops for the repair of harm to the automobile or for labor in connection therewith, by use of a flat rate.” Over 50 years have given that passed, and customers and auto repairers possibly stay victims of the really identical misconduct insurers have been directed to cease undertaking decades ago.

I urge the DOJ to investigate and make a determination as to whether or not such practices violate the 1963 consent order or any other existing federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts amongst insurance coverage organizations and facilities listed in their direct repair programs or preferred lists. I would also like to request an update with regards to DOJ’s understanding of the current signatories of the 1963 consent decree and whether or not they continue to be bound by the consent decree in light of organization transactions in the years since the decree was signed.

Thank you in advance for your prompt interest to this crucial matter harming buyers and the auto repair industry, and compromising car security.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Associated Articles:

• West Virginia Judge Dismisses Components Suit Against Body Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm More than Auto Repair Practices


• Indiana Body Shops Sue Insurers more than Compensation for Vehicle Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

U.S. Senator Richard Blumenthal (D-Conn.) is urging the Division of Justice (DOJ) to investigate a recently aired CNN report’s allegation that auto insurers might be pressuring buyers to repair their vehicles at the insurers’ preferred repair shops.

“Contrary to what buyers may possibly be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with quality repairs,” Blumenthal wrote in a letter sent to U.S. Attorney General Eric Holder last Friday.

“It appears to be frequent information among auto repair shops that the ideal way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering constant, quality service, but by agreeing to charge beneath-market labor prices and use more affordable, salvaged, employed, or even counterfeit parts of questionable high quality and safety,” Blumenthal wrote.

“Unfortunately, several customers are also getting misled into considering that they are required to have their automobile repaired at one of these shops,” Blumenthal wrote in the letter. “This has the harmful effect of limiting customer option, producing a critical security risk, and suppressing competitors in the auto repair business.”

The following is the complete text of Blumenthal’s Feb. 20 letter to Lawyer General Holder:

The Honorable Eric Holder

Attorney Common of the United States

Robert F. Kennedy Developing

950 Pennsylvania Avenue NW

Washington, DC 20530

Dear Attorney Common Holder:

As a longtime advocate of customer option, I create to bring to your consideration to troubling new proof that our nation’s leading auto insurers continue to engage in anticompetitive and possibly illegal tactics to pressure shoppers into repairing their cars at insurer-preferred repair shops. As uncovered in a special investigation featured on Anderson Cooper 360 Wednesday evening, insurance steering not only undermines a standard consumer appropriate, but can also compromise the security of cars on our nation’s roads—endangering motorists and their passengers.

I urge the Division of Justice (DOJ) to quickly investigate such practices by the auto insurance coverage market and act swiftly to protect the security of consumers and preserve competitors in the auto repair sector.

As junk yard, remanufactured, and utilized components of substandard good quality turn out to be increasingly broadly offered, auto insurers are adopting alarming new approaches to save money at the expense of consumer safety. Contrary to what consumers could be led to believe by their insurers, repair shops preferred by insurers do not necessarily equate with top quality repairs. It seems to be common expertise amongst auto repair shops that the ideal way to land a coveted spot on an insurer’s preferred list is not necessarily by delivering consistent, top quality service, but by agreeing to charge beneath-market labor rates and use less costly, salvaged, utilised, or even counterfeit components of questionable quality and security. However, a lot of shoppers are also getting misled into pondering that they are required to have their car repaired at one of these shops. This has the dangerous impact of limiting customer selection, creating a severe security danger, and suppressing competitors in the auto repair market.

According to a 1963 consent decree with the DOJ, a quantity of insurers had been ordered to quit: “sponsoring any appraiser directing, advising or otherwise suggesting any person or firm do business with any independent or dealer-franchised automotive repair shop working out handle over the activities of any appraiser and fixing or otherwise controlling the prices charged by automotive repair shops for the repair of damage to the automobile or for labor in connection therewith, by use of a flat rate.” More than 50 years have because passed, and buyers and auto repairers possibly remain victims of the quite exact same misconduct insurers have been directed to stop carrying out decades ago.

I urge the DOJ to investigate and make a determination as to regardless of whether such practices violate the 1963 consent order or any other present federal laws. As you investigate this matter, I urge you to use your authority to investigate the contents of contracts between insurance firms and facilities listed in their direct repair programs or preferred lists. I would also like to request an update regarding DOJ’s understanding of the existing signatories of the 1963 consent decree and regardless of whether they continue to be bound by the consent decree in light of business transactions in the years because the decree was signed.

Thank you in advance for your prompt consideration to this essential matter harming consumers and the auto repair business, and compromising car safety.

Sincerely,

RICHARD BLUMENTHAL

United States Senator

 
Connected Articles:

• West Virginia Judge Dismisses Parts Suit Against Physique Shop, Liberty Mutual


• Oklahoma AG Warns Against ‘Steering’ to Repair Shops by Insurers


• Louisiana AG Files Suit Against State Farm Over Auto Repair Practices


• Indiana Body Shops Sue Insurers more than Compensation for Automobile Repairs

Conn. Senator Urges DOJ to Investigate Auto Insurers’ ‘Preferred’ Repair Shops

Senator Issues Report Saying Automakers Are Clueless About Automobile Hacking

Senator Ed Markey (D-MA) just released a strident report [hyperlink opens PDF] accusing some of the biggest automakers in the marketplace of getting no clue how to avoid hackers from taking over your auto. It is just the most current in an ongoing—and sometimes breathlessly overblown—national conversation about the perils of our increasingly digital automobiles.

The report quizzed 16 significant automakers on the vulnerability of their cars to hacking, and how they counteract or detect hacking events. The response wasn’t great.

Sen. Markey’s report says that “nearly 25 % of cars on the market include wireless technologies that could pose vulnerabilities to hacking or privacy intrusions.” It goes on to report that most carmakers are “unaware of or unable to report on previous hacking incidents,” that safety measures preventing remote access to automobile electronics are “inconsistent and haphazard across all automobile manufacturers,” and that carmakers gather “large amounts of data on driving history [...] and most do not describe successful means to secure the data.”

U.S. Senator Ed Markey (D-MA)

Tellingly, the report claims that “many companies did not seem to comprehend the inquiries posed by Senator Markey.” Have been the Senator’s concerns too abstruse, showing a lack of understanding of the state of the art of automotive tech? Have been the automobile businesses feigning ignorance to keep away from answering for their undisclosed data collection and lazy safety? Or do automakers truly have no idea the extent to which their automobiles can be hacked?

“Drivers have come to rely on these new technologies, but unfortunately the automakers haven’t carried out their component to shield us from cyberattacks or privacy invasions,” Markey stated in a statement.

The Markey report comes just a day after 60 Minutes aired a segment purportedly showing how easily a nefarious hacker can gain comprehensive control of a contemporary car, component of a larger report about the Division of Defense and DARPA’s investigation into producing the next generation of world wide web-connected devices hacker-proof.

As has been correct in the previous, the 60 Minutes report, which you can watch in full on the CBS News internet site, was heavy on shock footage, which includes shots of a terrified Lesley Stahl mashing a seemingly unresponsive brake pedal as a laptop-wielding hacker gleefully requires control of her car from across the parking lot.

“This is a regular new car,” Stahl’s voiceover reports, puttering around a parking lot in what’s clearly a final-generation Chevy Impala.

[embedded content material]

“Using a laptop, the hacker dialed the car’s emergency communication program and transmitted a series of tones that flooded it with data,” Stahl explains, seemingly referring to the Impala’s OnStar method. “As the car’s pc attempted sorting it out, the hacker inserted an attack that reprogrammed the computer software, gaining total remote control.” Even though it’s achievable that hydraulic enhance would disappear if the engine were turned off, thereby requiring much more stress from the driver to attain a quit, it is very unlikely that the car’s brakes would just cease functioning regardless of what a hacker had carried out.

But that claim feels a bit more plausible than the last time the topic of automobile hacking entered the mainstream media. Back in 2013, a report revealed the hackability of current automobiles, and news outlets latched on—but largely neglected to highlight that the would-be hacker necessary to plug a physical device into the vehicle in order to achieve handle.

The reality is that modern vehicles are enormously complex and increasingly connected. As the Markey report rightly points out, new automobiles typically are capable of transmitting driving history and individual car data without having owners being created explicitly conscious, and opt-out procedures are either unexplained or nonexistent. The same privacy issues that circle about our web-connected devices at home are reaching into our automobiles, and most of us are ignorant of their extent.

And with Bluetooth, WiFi, keyless entry, GPS navigation, and cellular telematics systems like OnStar, today’s vehicles have grow to be inextricably connected to the so-called internet of things. The threat of poor actors employing that capability to take more than a vehicle is genuine, and the analysis that DARPA is undertaking to discover vulnerabilities in the cars we buy is just as crucial as the organization’s anti-hacking efforts focused on drones, military communications, and our nation’s infrastructure.

But till we get a much better understanding of exactly what hackers are capable of, and exactly how they can worm their way into our cars, it’s very best to take these reports with a grain of salt. After all, 60 Minutes has a bit of a shaky history when it comes to reporting on automobiles.

---

---

This story originally appeared on roadandtrack.com.

Senator Issues Report Saying Automakers Are Clueless About Automobile Hacking