The week of June 08, 2009
Connecticut attorney general opposes steering, insurer ‘interference'
by John Yoswick
Connecticut Attorney General Richard Blumenthal, an active proponent of anti-steering legislation in that state, drew a standing ovation from collision repairers for a recent presentation in which he strongly backed shop independence.
“In your industry and profession, my feeling has been we should work to promote competition without undue pressure, influence or interference by anyone, principally the insurance companies," Blumenthal said at the Society of Collision Repair Specialists (SCRS) Forum, held in Hartford, Conn.
He likened the situation to his fight in the medical profession to ensure that decisions about care are made by patients and doctors.
“The bean counters and the HMOs should not be interfering or trying to influence those decisions," he said. “In your profession, likewise what I would like is to see is consumers make decisions free of any interference. I use the slogan: ‘Your car. Your choice.' Consumers should not be steered. They should not be required to go to one autobody repair shop or another. I firmly believe that consumers have that right, and they should be able to exercise that right with as much accurate information as possible. And so in addition to the goal of promoting free and informed competition among autobody repairers, I also believe there needs to be as much disclosure as possible. So when there are any arrangements or agreements involving those consumers, they should be disclosed.”
Blumenthal opened his presentation by expressing the respect and admiration he has grown to have for collision repairers.
“On a personal level, with four teenagers in my house, I'm one of your frequent customers,” he said, drawing laughter from the audience. “Very seriously, I know the work that you do, and when I use the word ‘profession,' I really mean you are deserving of the kind of respect that any other profession in this state deserves. I want to be a supporter and a friend, and I'm here in that spirit, to say: Let's build a consensus that will preserve your interests and consumer interests.”
Blumenthal backed legislation in Connecticut last year that specifically prohibits insurers from waiving deductibles or offering warranties if the consumer uses an insurer-recommended shop. It also prohibits insurers from using what Blumenthal refers to as “soft steering,” suggesting that use of any shop will result in delays, added costs or lack of a warranty for repairs.
At the SCRS event, Blumenthal said prohibiting insurer interference goes beyond steering issues.
“Your standards about equipment and parts have to be respected," he said. "In addition, the data you have ought to be your data. It belongs to the consumer and it belongs to you. There should be no required sharing of that kind of data.”
Blumenthal indicated there is a loose-knit group of attorneys general in other states interested in anti-steering and other collision repair issues, and said he hopes they would create a more formalized working relationship later this year.
“We have discussed it most recently at our last meeting of the National Association of Attorneys General, which was in March,” he said. “I think they would be very interested in hearing from auto repairers in their state, because I think many of them simply haven't been exposed to the kind of facts and views and perspectives that I've heard (from Connecticut shop owners). My education has come from the (Connecticut) folks in this room.”
He suggested that shops begin with a letter to their state attorney general, outlining some of their concerns about anti-competitive practices that are harming consumers, and asking to be heard. He told repairers from several states at the event that he would be happy to contact the attorney general in their state on their behalf.
John Yoswick, a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988, is also the editor of the weekly CRASH Network (for a free 4-week trial subscription, visit www.CrashNetwork.com <http://www.CrashNetwork.com> ). He can be contacted by email at jyoswick@SpiritOne.com.
NOTE: This editorial expresses the opinions of its sole author only and does not necessarily reflect the opinions of Autobodyonline, or any of its subsidiary companies, clients, or supporters.