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Louisiana Passes Bill Criminalizing Counterfeit Airbags, Fines to Range to $10,000, Imprisonment Louisiana is the sixth state to approve legislation making it a crime to use counterfeit airbags in auto repairs, as of May 8. The Louisiana Legislature passed Senate Bill 32 (SB32) making it illegal to knowingly manufacture, import, sell, offer for sale, install or reinstall a counterfeit or nonfunctional air bag. Louisiana is the sixth state to pass such a bill joining Alabama, Connecticut, Florida, New York and Ohio. Florida recently passed its bill and it awaits the governor’s signature. Violators who knowingly install or reinstall a counterfeit or nonfunc-
tioning airbag, upon first conviction, could be fined up to $1000, or imprisoned for up to six months. Upon a second conviction, or it the violation results in serious injury or death, violators would face a $2500 fine and imprisonment up to one year. Manufacturing or selling a counterfeit or nonfunctional airbag would result in fines of from $2500 to $10,000 and imprisonment of from up to one year to five years depending upon the dollar value of the airbags sold in violation of the law. The bill will become effective the day after it is signed by the governor.
The Louisiana Collision Industry Association (LaCIA) held a meeting on Thursday, May 22 at the Hilton Garden Inn, located at 400 Mane St, Monroe LA 71291. The group gathered at 6PM for a light dinner, and the meeting began at 6:30. The main goal of the meeting was “to share with everyone the direction the association is taking and what plans we have in store,” Executive Director Alysia Hanks explained. Guest speakers included Attorney General Buddy Caldwell and his assistant, Randy Ishee, who will update attendees on their efforts. “We have received the full attention of our Attorney General’s office, and they have been in touch numerous times with myself and
several of our members regarding certain matters,” Hanks says. “I feel we are very lucky to have the backing of these gentlemen, especially Mr. Ishee who has spent many years working for Ford and has knowledge of what our industry is going through. He isn’t happy with what he has come across so far, and last week, he informed me that, due to the huge amount of information he is gathering, they have brought in another investigator for our cases... I think [our members] will agree that he is very capable and more than willing to handle this.” The meeting began with reintroducing LaCIA’s board and mission, followed by discussions on what
Attorney General Attends LaCIA Meeting on May 22
See Attorney General, Page 19
VOL. 32 ISSUE 6 JUNE 2014
Judge Dismisses Suit Against GM’s Aftermarket Part Price Matching Program Citing Market & Definitions Ruling states aftermarket parts distributor’s amended complaint against General Motors’ “Bump the Competition” price matching program was insufficient to prove antitrust, predatory pricing or conspiracy claims. A federal judge in Louisiana granted the defendants’ motion to dismiss a lawsuit brought by a distributor of non-OEM parts that alleged General Motor’s price matching program was anti-competitive. The suit, Felder’s Collision Parts v. General Motors Company et. al. was originally filed against GM and the Allstar Automotive Group, an OEM dealer. The initial complaint, filed in October 2012, said the program, which requires dealerships to ‘sell OEM parts below dealer cost,’ is a violation of the Sherman Act, the Robinson-
Patman Act (which prohibits anticompetitive pricing) as well as the Louisiana unfair trade practices and anti-trust laws. Court documents describe antitrust, monopoly, and predatory pricing concerns. Felder’s Collision alleged that GM and original-equipment parts distributors such as All Star Automotive Group engaged in illegal “predatory pricing” practices to undercut aftermarket prices and drive aftermarket competitors out of business. The suit alleges violations of federal and state antitrust and state consumer protection regulations. As Autobody News reported last June, U.S. District Judge James Brady granted Felder’s motion to file an amended complaint. We incorrectly See Judge Dismisses Suit, Page 10
Deadly Tornados Caused by Massive Storm Hitting 20 States, At Least 40 Deaths, $1 Billion in Damages The series of storms that wreaked havoc across much of the United States in April rank as the first billion-dollar economic loss event of 2014 that can
be attributed to thunderstorms, according to Aon Benfield, the world’s leading reinsurance intermediary’s monthly Global Catastrophe Recap report. At least 40 people were killed by flash flooding and severe weather during the storms, which included nearly 70 confirmed tornadoes across more than 20 states in the Plains, Mississippi Valley, Southeast, Midwest and Mid-Atlantic regions. Insured losses due to the multiday outbreak will likely end up in the
hundreds of millions of dollars, Aon Benfield said. Employees of Auto Glass Now in Jackson, MS, escaped serious injury or death just minutes before a tornado leveled the automotive glass company on April 28, according to regional manager John Ketchum. The shop was pretty much a total loss, but the company has already leased a new building and is back in business already, he says. “[Employees at the shop] called me as I was on my way,” Ketchum explains. “They were concerned because the weather was getting bad and tornado alerts were being issued. They were listening to the radio but none of us realized the severity of the storm. When the alarms [warning sirens] went off, I told them to leave. About 20 minutes later the building was gone. All we could salvage was a chair.” The employees are safe and their See Deadly Tornados, Page 18
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