What’s Ahead For The Collision Industry?
by Bob Redding The flurry of proposed legislative, regulatory and legal tinkering to the insurer-repairer-consumer relationship is the result of the collision industry’s frustration with federal antitrust laws. Specifically, McCarran-Ferguson has received little attention since its affiliation with the House version of the Clinton health care plan. ASA collision leaders met with key members of Congress after the 1994 election and found virtually no interest in pursuing any revisions to McCarran-Ferguson.
What are the options, then, for collision repairers?
Some advocate class action lawsuits while others revisit old case law. Still others argue that we should build new coalitions. While it is valuable for industry leaders to discuss and debate strategies, some basic facts must not be overlooked:
ASA spent a great deal of time reviewing and seeking professional comment on many of the cases discussed since the New Jersey managed care issue was debated. This included a review and protracted discussions with the Justice Department that has supported antitrust reform in the past. Former House Judiciary Committee Chairman Jack Brooks’ aide is now a Justice senior antitrust policy advisor.
- Federal antitrust reform outside the parameters of the compromise in the Clinton health care bill will be very difficult.
- The U.S. Department of Justice has not encouraged pursuit of legal remedy.
The repairers coalition market lies primarily with pharmacists, medical specialists and some consumer groups. Repairers have to be careful because some reforms sought by consumer advocates might not resolve industry issues. ASA has found that consumer groups oppose some industry reforms, particularly the aftermarket crash parts bills that have sprung up around the country. Conflicts within various health and consumer organizations prevent them from serving as advocates on key reform issues.
How does the industry move forward? The coming year will be one of the most active on record in state legislatures. A survey of ASA members finds that initiatives involving non-OEM crash parts, anti-steering, point-of-sale, shop licensing, paint caps and labor rates are high on the collision industry’s 1997 agenda.
At the federal level, national uniform titling legislation will probably move in the next Congress. Federal legislators are also reviewing point-of-sale and crash parts legislation. Post-repair inspections will be debated during reauthorization of the Intermodal Surface Transportation Efficiency Act (ISTEA).
For decades, collision shops have focused on McCarran-Ferguson reform as the salvation of the industry. Many would argue that even with reform, major progressive changes in the industry will not occur. Therefore, the decentralization of the collision industry’s effort is certainly in line with substantive resolution of our issues. No one believes that one new law or one new regulation will change the scope or face of the industry. Dealing with each individual issue in the most effective manner possible to produce the desired result is necessary for the industry to move forward.
Bob Redding is ASA’s Washington representative. He holds a law degree from the George Washington University School of Law.
ASA Main Page || AutoInc. Main Page
NACE Pre-Show Coverage
Keeping Up With Industry Trends
Colin Powell – Soldier, Leader ... Automotive Technician?
NACE Show Specials
How's Your Business? || Taking Your Scan Tool To The Next Level
Cruising Instead Of Abusing || Putting The Brakes On Payroll Headaches
What’s Ahead For The Collision Industry?
Guest Editorial -- The Mouse That Roared
Tech To Tech || TechTips || Stat Corner || News Briefs
Taking The Hill || Directions || Chairman's Message
AutoInc. Magazine ®, Vol. XLIV No. 11, November 1996