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AUTOBODYNEWS.COM
Vol. 10 / Issue 6 / September 2019
U. S. District Judge Dismisses Repairify’s Lawsuit Against AirPro Based on Venue, Without Prejudice
Solving the Tech Shortage: Focusing on Kina’ole: Doing the Right Thing for the Right Reason
by Chasidy Sisk
by Stacey Phillips
On July 15, U. S. Southern District of Texas Judge Ewing Werlein Jr. released a final judgment in the lawsuit filed against AirPro Diagnostics by asTech parent company Repairify. The case was dismissed because Judge Werlein found there were insufficient grounds for Repairify to sue AirPro in the federal Texas district; however, the ruling merely addressed the venue, not the merits of the case on relevant laws. Because the case was dismissed without prejudice, Repairify is permitted to refile the law-
suit, though the company has not yet indicated whether it intends to do so. In a statement released on July 17 about what it referred to as “asTech’s second unsuccessful attempt to use litigation to damage AirPro’s growth in the marketplace,” AirPro President and CEO Lonnie Margol said, “AirPro remains confident that its ‘Truth Campaign,’ listed on our website, can easily be verified through an independently conducted, side-by-side comparison and renews its challenge to asTech to participate. We are, however, confident that See Lawsuit Against AirPro, Page 12
Marketing for Shops: Does Yelp Bully Body Shops? 0by Ed Attanasio
Some shops have told me Yelp is unfair, unless they’re willing to buy an advertising plan for $300-$500 or more. Shop owners aren’t fond of it, but they realize Yelp isn’t going anywhere any time soon. Some try to ignore Yelp altogether while others seemingly live and die with each review, so it’s always a hot topic amongst small business owners. Years ago, I heard a representative from Yelp who was invited to speak at a California Autobody Association (CAA) meeting in San Jose, CA. After his brief presenta-
Samantha McCauley, a collision repair refinish instructor at Hammond High School in Hammond, IN, said it can be very challenging to acquire the proper tools and equipment needed in her classroom to properly instruct students.
tion, there was a question-and-answer session and at one point I thought - I hope they don’t lynch this poor guy! Many of the shop owners in attendance vented their many grievances about Yelp, including the authenticity of reviews and preferential treatment for shops that buy advertising. The controversy surrounding Yelp was re-ignited with the recent release of Billion Dollar Bully, a new documentary about Yelp that you can watch on Amazon and iTunes. It claims that Yelp extorts small business owners for advertising fees in See Marketing for Shops, Page 32
Toby Chess presented Samantha McCauley, a collision repair refinish instructor at Hammond High School in Hammond, IN, with two full toolboxes during the CIC in July, courtesy of March Taylor Scholarship Fund.
“There are a lot of times that I request equipment and I’m sure other teachers across the country are in the same predicament,” she said. “Our administration says to put our requisition forms in; every week for months, we follow up to find out what happened to the requisition forms only to find out the funds are already gone.” McCauley recently received a special gift to help alleviate that frustration. During the Collision Industry Conference (CIC) in Indianapolis, Toby Chess presented McCauley with two toolboxes, one for her own needs and the other for her students to use. The toolboxes were awarded on behalf of the March Taylor Scholarship Fund. “I truly appreciate what you are See Focusing on Kina’ole, Page 14
CIC: Regulators Show New Interest in ‘Most-FavoredNation’ Clauses by John Yoswick
What does Amazon’s contract with some online sellers have in common with State Farm’s direct repair agreement? The answer: most-favored nation clauses. Scrutiny by government regulators could be behind Amazon’s decision earlier this year to drop that clause in the United States, which required third-party sellers to price their products on Amazon no higher than they do anywhere else. Amazon had previously ceased using such “mostfavored-nation” (or “price parity”) contract clauses in some European countries after government investigations. The revived interest in the po-
tentially anti-competitive impacts of most-favored-nation clauses (MFNs) – such as the one State Farm “Service First” shops have had to sign since 2006 – was discussed by the Collision Industry Conference (CIC) “Governmental Committee” in Indianapolis in late July. Michigan attorney Stephen Bolerjack, whose practice focuses on antitrust and contract issues in the automotive industry, said that on the surface, MFNs appear pro-competitive and simplify the negotiation process between parties. But they also can focus solely on price and overlook other factors that can impact pricing, he said. “If the seller is doing something different with other buyers, there’s a See CIC: Regulators, Page 28
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