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Tesla monopoly class action lawsuit overview:
- Who: Virginia M. Lambrix filed a class action lawsuit against Tesla Inc.
- Why: Lambrix claims Tesla has monopolized the market for compatible vehicle replacement parts and maintenance and repair services for Tesla vehicles.
- Where: The class action lawsuit was filed in California federal court.
Tesla has monopolized the market for compatible vehicle replacement parts and maintenance and repair services for its Tesla vehicles, a new class action lawsuit alleges.
Plaintiff Virginia M. Lambrix claims Tesla vehicle owners are forced to pay “supracompetitive” fees and suffer “exorbitant” wait times to maintain and repair their vehicles as a result of Tesla’s alleged conduct.
Lambrix argues Tesla designs its vehicle warranties and related policies to “discourage Tesla owners from obtaining parts or services anywhere other than Tesla.”
“Tesla owners … effectively have only one option: schedule service at Tesla (or within the limited network of Tesla-approved service centers), where their Tesla will be maintained or repaired using only Tesla (original equipment manufacturer) parts,” the Tesla class action states.
Lambrix wants to represent a nationwide class of Tesla vehicle owners who have paid Tesla for repair services or Tesla-compatible parts since March 2019.
Tesla limits access to manuals, telematic data, diagnostic tools, OEM parts, says class action
Lambrix claims Tesla designs its vehicles so that any maintenance or repairs to them would require “access to diagnostic and telematic information accessible only through remote management tools exclusively accessed by Tesla.”
Tesla also limits access to its manuals, vehicle telematic data, diagnostic tools, and original equipment manufacturer (OEM) replacement parts, the Tesla class action alleges.
“Tesla has prevented independent providers from entering the Tesla Repair Services market, prevented its OEM parts manufacturers from producing Tesla-Compatible Parts for anyone other than Tesla, and prevented market entry by non-OEM, Tesla-Compatible Parts manufacturers,” the Tesla class action states.
Lambrix claims Tesla is in violation of the Sherman Act and the Magnuson Moss Warranty Act. She is demanding a jury trial and requesting declaratory and injunctive relief along with an award of treble damages for herself and all class members.
Tesla announced earlier this month that it was putting a temporary pause on new installations of its Full Self-Driving beta feature, over concerns it could present a crash risk.
Have you been forced to pay a ‘supracompetitive’ fee to repair your Tesla vehicle? Let us know in the comments!
The plaintiff is represented by R. Alexander Saveri, Geoffrey C. Rushing, Matthew D. Heaphy, and David Y. Hwu of Saveri & Saveri, Inc., Matthew W. Ruan, Douglas A. Millen, Michael E. Moskovitz, Nia-Imara Binns, and Kimberly A. Justice of Freed Kanner London & Millen LLC, and Stuart G. Gross of Gross Klein PC.
The Tesla monopoly class action lawsuit is Lambrix, et al. v. Tesla, Inc., Case No. 3:23-cv-01145, in the U.S. District Court for the Northern District of California.
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3 thoughts onTesla class action claims company’s monopolization causes high prices, long repair times
Tesla is charging $2000 for a new windshield on a Model Y! Can’t go to any other repair shop because they cannot get replacement parts or calibrate the cameras after the repair is finished.
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