Harley Davidson class action alleges warranty violates state, federal laws

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Harley Davidson class action overview:

• Who: A Harley Davidson motorcycle owner is suing the company
• Why: He says the company creates a monopoly by conditioning the product warranty on the use of specific repair service and authorized parts
• Where: The lawsuit was filed in a California federal court

Harley Davidson creates a monopoly for repairs of its bikes by conditioning its product warranties on the use of specific repair services and authorized parts, a new class action lawsuit alleges.

Plaintiff Scott Koller filed the class action lawsuit against Harley Davidson Motor Company Group, LLC and Harley-Davidson Motor Company, Inc. Aug. 5 in a California federal court, alleging violations of state and federal consumer laws. 

Koller alleges that Harley-Davidson sells motorcycles with warranties that condition the continued validity of the warranty on the use of “only an authorized repair service and/or authorized replacement parts.” 

Koller says building in arrangements that condition a consumer product’s warranty on the use of a specific repair service or the use of authorized parts is a violation of state and federal law, including the Magnuson-Moss Warranty Act.

Koller adds that Harley Davidson’s authorized dealers provide service at a price-premium compared to the cost of independent service, and that its authorized parts are also sold at a price-premium compared to the cost of non-Harley-Davidson parts and supplies.

Harley Davidson owners forced to pay more or risk having warranty voided, lawsuit states

The result is that consumers are forced to pay for the more expensive repairs, maintenance, and parts for their motorcycle from authorized Harley-Davidson dealers, Koller says.

“In other words, if a consumer repairs his or her own motorcycle or uses an independent dealer and/or installs unauthorized parts or accessories on his or her motorcycle, Harley-Davidson threatens that it will void the warranty.”

Koller adds that sales of genuine parts and accessories are Harley-Davidson’s second-largest source of revenue and consistently comprise approximately 20% of those revenues.

Koller is looking to represent anyone who bought a Harley-Davidson motorcycle in the United States, plus a California Subclass.

He’s suing for breach of warranty and violations of state consumer law and seeking certification of the class action, damages, fees, costs and a jury trial. 

Meanwhile, in 2021, Harley Davidson riders Ronald Garcia and Michael Harrison accepted a settlement from the company, ending a 2019 class action lawsuit alleging that the brakes on certain bikes made between 2008 and 2010 were defective.

What do you think of the allegations against Harley Davidson in this case? Let us know in the comments! 

The plaintiff is represented by Seth A. Safier and Marie M. McCrary of Gutride Safier LLP.

The Harley Davidson Class Action Lawsuit is Scott Koller v. Harley Davidson Motor Company Group, LLC et al., Case No. 4:22-cv-04534 in the U.S. District Court Northern District of California.

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