A few days ago, we told you about the Federal Trade Commission’s (FTC) decision against Harley-Davidson (& Westinghouse). At issue was Harley’s language voiding their motorcycle’s warranty. The FTC said its language conveyed that “…the warranty is void if customers use independent dealers for parts or repairs.”

As a result of the FTC’s decision, the Agency is requiring that the “…companies fix warranty language by removing illegal terms and recognizing the right to repair, come clean with customers, and ensure that dealers compete fairly with independent third-parties.

FTC decision specifics

Specifically, the FTC’s decision orders:

• Prohibit further violations: The companies will be prohibited from further violations of the Warranty Act and in Harley-Davidson’s case, the Disclosure Rule. They will also be prohibited from telling consumers that their warranties will be void if they use third-party services or parts or that they should only use branded parts or authorized service providers. If the companies violate these terms, the FTC will be able to seek civil penalties of up to $46,517 per violation in federal court.

• Recognize consumers’ right to repair: Both companies will be required to add specific language to their warranties, saying, “Taking your product to be serviced by a repair shop that is not affiliated with, or an authorized dealer of [Company] will not void this warranty. Also, using third-party parts will not void this warranty.”

• Come clean with consumers: Both companies must send and post notices informing customers that their warranties will remain in effect even if they buy aftermarket parts or patronize independent repairers.

• Alert dealers to compete fairly: Both companies are being required to direct authorized dealers to remove deceptive display materials, train and monitor employees, and not promote branded parts and dealers over third parties.

While the decision is not yet final, they are quite far-reaching. Clearly, they will significantly impact some of Harley’s business practices.

Harley-Davidson sponsorship of Vance & Hines

And it seems that the FTC’s decision has not escaped the notice of former partner Vance & Hines (V&H). As you may already know, V&H and Harley had a 20-year partnership in NHRA drag racing. During that timeframe, the V&H Harley-Davidsons took 107 NHRA Pro Stock Motorcycle wins and 10 NHRA Pro Stock Motorcycle Championships.

But that long-term sponsorship went bust in November of 2020.  Harley issued a statement saying:

“Harley-Davidson’s heritage is rich with racing lore and legacy, and throughout our brand’s history, Harley-Davidson dealers have been the cornerstone of our racing programs.”

“We are excited to continue to support the XG750R racing motorcycle and NHRA Pro Stock Motorcycle efforts through our dealers.” – Harley-Davidson

The statement meant that Harley was ending its factory racing programs in both NHRA and American Flat Track.  Instead, Harley said it would concentrate on more grassroots efforts. And Vance & Hines ran Harley’s factory efforts in both series.

Ex-partner’s reaction

The FTC’s decision was a strong message to Harley-Davidson, and it’s hard to imagine that several aftermarket companies were not pleased at this, particularly Vance & Hines, whose HD-oriented products are also popular with non-race customers.  According to multiple powersports news sources, including Powersports Business, Mike Kennedy, V&H’s CEO, issued a statement after the FTC’s finding saying:

“This action taken by the FTC is a huge win for motorcycle riders. While we still need to see how this plays out, we anticipate that riders will have more choices in how they repair and update their motorcycles during the warranty period, which is clearly a big deal for companies in the motorcycle aftermarket, too. I hope that the ‘it will void your warranty’ threat for someone who just wants a better sounding or smoother running Harley is a thing of the past.”

While many may agree with Mike’s sentiment, it’s a bit surprising that Vance & Hines issued a press release on the topic.  Or is it?

No comments from other aftermarket companies?

Interestingly, not many companies positively affected by the FTC’s ruling issued press releases on the decision.  In fact, a quick Google search didn’t turn up a single aftermarket manufacturer giving their thoughts on the subject.

So is there something more to Vance & Hine’s press release?  If your partner pulls the plug on your 20-year partnership, would you be upset, or would you just accept that race team deals come and go all the time? And if the FTC later sanctioned that company in a very public fashion, would you publicly add your thoughts?