Connecticut Joint Committee on Insurance & Real Estate Considers Anti-Competition, Anti-Motoring Consumer Bill

    ALEXANDRIA, Va., March 16 "A controversial, anti-
competition, anti-motoring consumer bill is being considered for passage in
the Connecticut Joint Committee on Insurance and Real Estate.  Committee Bill
525 is a pro-monopoly bill that is being promoted by special interest groups
in Connecticut who are trying to sell higher-priced Original Equipment
Manufacturer (OEM) parts in order to increase their profit margin through
mark-ups," stated Sandy Bass-Cors, Executive Director for the Coalition for
Auto Repair Equality (CARE).
    "Committee Bill 525 is known as a crash parts bill.  Should this bill
pass, it would require that only aftermarket parts would have to be identified
through manufacturer markings.  OEM parts do not have to be marked.  This is
highly discriminatory.
    "In addition, CB 525 flies in the face of federal legislation.  The
Magnuson-Moss Act, passed in the U.S. Senate in the 1970s, prohibits
warranties from being tied to repairs.  Committee Bill 525 is promoting OEM
parts for the first five years of a vehicle's warranty," continued Bass-Cors.
    Forty-two states have introduced crash parts bills and 42 have killed
them.  "The Constitutionality and legal authority of crash parts legislation
is highly questionable.  For example, Montana killed two crash parts bills and
passed a third.  The third bill has had a class action law suit filed against
it on Constitutional grounds and on Interference with Interstate Commerce
laws," stated Bass-Cors.
    "If the Joint Committee on Insurance and Real Estate pass CB 525, it would
be equivalent to restricting and/or eliminating generic brand medicines.  The
people hurt the most by CB 525 are the low-and fixed-income motorists and
small business.  Not only would the price of all car parts dramatically rise,
but it is likely that insurance premiums would as well.  Aftermarket parts are
the generics of the car parts industry, would the Joint Committee eliminate
generic drugs?" continued Bass-Cors.
    CARE is a national, nonprofit organization representing many companies in
the automotive aftermarket, a five million people strong industry.  Among
CARE's member companies are: NAPA, Midas, CARQUEST, AutoZone, Advance Auto,
Jiffy Lube, O'Reilly's, Discount Auto, and CSK Auto (parent company of
Checker, Schuck, Kragen).
    "Committee Bill 525 is a smoke-screen to convince motoring taxpayers to
purchase OEM parts instead of aftermarket parts.  Many aftermarket parts are
manufactured by the same manufacturers as OEM parts, but, the difference is
price.  Aftermarket parts cost up to 50 percent less than car dealer parts and
most aftermarket parts come with long-term or life-time warranties," stated
Bass-Cors.
    "The only fair, pro-consumer decision that the Joint Committee could make
is to kill CB 525 and let the free-market be the deciding ground," concluded
Bass-Cors.