Navigation

© Zeal News Africa

IGA asks feds to stop anti-competitive behavior by Safelite as State Farm glass admin | Repairer Driven News

Published 17 hours ago3 minute read

The Independent Glass Association (IGA) has requested a temporary moratorium from the Federal Trade Commission (FTC) and Department of Justice (DOJ) to stop alleged anti-competitive behavior by Safelite Solutions as the new national glass claims administrator for State Farm. 

Safelite Solutions took over the role from LYNX Services July 1. IGA claims that since the change, State Farm’s portal only displays limited shops, often Safelite-owned chains, and centralized numbers are using subtle steering, such as implying non-Safelite shops may charge out-of-pocket or lack warranties. 

IGA previously filed letters with the FTC and DOJ voicing antitrust concerns in the spring. Supplemental letters were sent Monday, updating the federal agencies about Safelite’s practices. 

The letters also say that consumers interacting with State Farm’s claim channels are routinely presented with “@safelite.com” communications and Safelite AutoGlass branding. It adds that without clarification, it makes consumers think they are communicating with a repair provider. 

The only POS systems being used for dispatches are OmegaEDI, the letter says. This is the POS used by Safelite-owned chains, it adds. 

“No equal access is granted to other POS systems or software vendors, constituting a clear barrier to market entry,” the letter says. 

The letter also says that even shops that complied with program opt-in deadlines have been excluded from listings or assignment processes. 

“These tactics exploit Safelite’s dual role as administrator and repairer, reducing visibility and access for non-affiliated shops and steering claims to its own facilities, exactly the type of anti-competitive conduct the FTC is charged with preventing,” the letter says. 

Safelite is also violating the CAN-SPAM Act by sending unsolicited emails and texts from Safelite Autoglass to consumers after they’ve selected a non-Safelite shop, according to the letter. It adds that these emails often use insurance company logos and come from Safelite domains. 

“These messages seek to redirect jobs away from chosen independent shops back to Safelite AutoGlass under the false pretense of scheduling assistance,” the article says. 

The letter asks for interim relief due to the ongoing harm to independent auto glass shops and confusion among consumers. 

“The unchecked power of Safelite Group is already producing adverse effects: shops are being excluded from claim assignments and consumer platforms, referrals are being steered unfairly, and misleading communications are undermining consumer confidence,” the letter says. “Without interim safeguards, the damage will continue to compound.” 

It asks for a temporary moratorium on exclusive integrations and transparency requirements for consumer communications.

IGA also sent a similar letter to State Farm last week. 

A federal judge denied a motion earlier this month by LYNX Services asking for a preliminary injunction and temporary restraining order against State Farm and Safelite Group. 

The motion requested that the two companies stop using and disclosing what LYNX alleges are its trade secrets and confidential information. It also asked for Safelite to destroy LYNX’s information and for the court to prevent Safelite from taking over as a third-party administrator for State Farm’s glass claims. 

Images

Photo courtesy of youngvet/iStock

Share This:

Origin:
publisher logo
Repairer Driven News
Loading...
Loading...
Loading...

You may also like...