Oct. 2, 2013—The Automotive Service Association (ASA) announced Tuesday that it has sent a formal request to state insurance regulators and attorneys general to review the legality of State Farm Insurance’s planned nationwide mandate of the PartsTrader parts procurement program for its Select Service direct-repair shops.
“We believe this mandatory parts procurement program stifles competition and harms both the consumer and the small businessperson,” Dan Risley, ASA executive director, wrote in the letter.
The planned rollout will require all shops participating in State Farm’s Select Service program to use PartsTrader’s software to electronically order parts, which the ASA claims may harm shop’s relationships with previous suppliers, limit the business of local parts suppliers, and increase cycle time while parts are shipped across the country.
The ASA initially contacted State Farm and PartsTrader after the pilot program was made public, expressing members’ concerns with the program. The ASA dispatched a team of collision repair leaders to State Farm’s headquarters to discuss the pilot, the impact of the program on collision repairers and any expanded program rollouts.
The full letter can be viewed at the ASA’s legislative website.
