Winds of Change

Are the winds of change blowing through the United States Department of Justice (DOJ)? Is the Obama Administration concerned with fair and free competition and therefore in pursuit of corporations that are not playing within the rules? A recent article by the New York Times News sure makes it sound that way. In particular, the article introduces the readers to the top official of the antitrust division at the DOJ, Christine A. Varney (a Syracuse native, I might add). The article notes that the administration is determined to reign in several industries, including airlines, railroad and pharmaceuticals.

The administration’s stance differs from that of the previous administration in that the current spin is that domination hurts consumers. To the contrary, the article supports that the Bush Administration held the position that larger corporations would benefit consumers due to economies of scale. Having experienced the inner workings of the auto glass repair and replacement industry and hearing of similar circumstances in the auto body repair industry, it is my hope that a slide of these industries will be prepared for the microscope. When an insurance claim is introduced into the process, small business operators in either of these industries can attest to the unfair practices and that steering truly does exist. You do not need to convince me that current practices in the auto glass industry restrict free and fair competition. And when competition is restrained, consumers are harmed. Consumers benefit when they are free to choose a service provider without conditions or undue influence. In the case of an insurance claim, we know that both factors are present. Consumers are harmed when something as critical as a properly installed windshield is to their safety is being installed by anyone who will “accept” the insurance company’s price. No other qualifications, just accept the price and the job is yours. And when two of the largest auto glass claims processors (i.e., third-party administrators) have major conflicts of interest, need I say more?

In a recent glassBYTEs.com™ video newscast, we viewed the newest addition to the Safelite distribution network. We are witnessing the “Walmart-ization” of the auto glass repair and replacement industry. Let me remind you that the replacement of a windshield is not, is not, a commodity. It is a service and a critical service indeed. And when that service involves the safety of consumers, we should all be ashamed of ourselves, regulators, insurance representatives and AGRR industry participants that we allow this scenario to continue to unfold. I commend the efforts of the various associations that are working feverishly to promote consumer safety through certification programs and installation standards. Free and fair competition must replace the present system in the AGRR industry. Consumers must be assured that their windshields are installed based on safety and not that their insurance company paid the lowest price for the claim.