July 18, 2013—Automotive Service Association (ASA) leaders recently gathered in Washington, D.C., to meet with administration and Capitol Hill officials to discuss Most Favored Nation (MFN) clauses contained in some direct repair program agreements with insurance companies.
ASA maintains that the anti-competitive nature of the clauses puts both consumers and collision shops at a disadvantage.
MFN clauses have been an ongoing issue for the last few years. Michigan and North Carolina have both passed bills to help prevent issues regarding MFN.
In 2012, ASA wrote administration officials asking that they consider the impact of MFN clauses on parties involved in property and casualty insurance, but testimony by administration officials on Capitol Hill reflect more interest in health insurance agreements.
“ASA continues to investigate the legality of MFN clauses. We believe these clauses are a threat to the industry and potentially harmful to consumers,” said Dan Risley, ASA executive director.
For more details on MNF clauses, visit ASA’s legislative website.
