May 2, 2016—The Automotive Service Association (ASA) announced Friday that its collision leaders met with members of Congress to discuss the impact of Most Favored Nation (MFN) clauses included in some direct repair program (DRP) agreements.
Under a MFN clause, an insurer is guaranteed to receive prices that are at least as favorable as those provided to other carriers doing business with the collision repair facility for the same products or services. ASA members gave real life examples of the effects the MFN clause has on the industry.
“We were encouraged by the receptive response on Capitol Hill. MFN clauses have been adversely impacting the collision repair industry for many years, and I feel confident that we are getting closer to a solution. Resolving issues of this scale requires time and persistence. As the voice of the industry in our nation’s capitol, ASA is committed to seeing them removed from all direct repair agreements,” Dan Risley, ASA president, said.
More information can be found on the ASA’s legislative website.
