ASA’s collision leaders met with key members of Congress and staff to discuss the impact of Most Favored Nation (MFN) clauses included in some direct repair agreements (DRP).
Under an MFN clause, an insurer is guaranteed that it will receive prices that are at least as favorable as those provided to other carriers doing business with the collision repair facility for the same products or services.
ASA members gave real life examples of the effects of the MFN clause on collision repair shops, consumers and non-MFN insurance providers. ASA President Dan Risley said, “We were encouraged by the receptive response on Capitol Hill. MFN clauses have been adversely impacting the collision repair industry for many years, and I feel confident that we are getting closer to a solution. Resolving issues of this scale requires time and persistence. As the voice of the industry in our nation’s capitol, ASA is committed to seeing them removed from all direct repair agreements.”
The Automotive Service Association is the largest not-for-profit trade association of its kind dedicated to and governed by independent automotive service and repair professionals. ASA serves an international membership base that includes numerous affiliate, state and chapter groups from both the mechanical and collision repair segments of the automotive service industry.
ASA advances professionalism and excellence in the automotive repair industry through education, representation and member services. To take advantage of the many benefits of membership in ASA, please visit www.ASAshop.org or call (817) 514-2900.
For additional information about ASA, including past media releases, go to www.ASAshop.org, or visit ASA’s legislative website at www.TakingTheHill.com.