According to the Consent Decree of 1963, auto insurers are enjoined from, among other things, placing into effect any plan, program or practice which has the purpose or effect of: (1) directing, advising or otherwise suggesting that any person or firm do business or refuse to do business with any independent or dealer franchised auto glass repair shop with respect to the repair of damage to automobile vehicles;(steering defined) or (2) fixing, establishing, maintaining or otherwise controlling the prices to be charged by independent or dealer franchised auto glass repair shops for the repair of damage to automotive vehicles or for the replacement parts or labor in connection therewith, whether by coercion, boycott or intimidation or by the use of flat rate or parts manuals or otherwise.

This Decree was issued because of the many years of abuse of power exhibited by auto insurers during the claims settlement phase of the insurance business.

Any auto insurance company that has contracted with Safelite Solutions, LLC has placed into effect a practice which has the effect of directing, advising or otherwise suggesting that policyholders do business with Safelite in violation of the Consent Decree of 1963.

Any auto insurance company that dictates flat rate windshield repair prices to be charged by independent or dealer franchised auto glass repair shops violates the Consent Decree of 1963. It is neither fair nor reasonable to assume auto glass repair facilities all over the country will or should set their auto glass repair prices at exactly the same rate.

Any auto insurance company that demands discounts off NAGS rates is fixing, establishing, maintaining or otherwise controlling the prices to be charged by independent or dealer franchised auto glass repair shops in violation of the Consent Decree of 1963. To continue to allow this practice is neither fair nor reasonable.

Any auto insurer that dictates labor rates to be charged by auto glass repair shops in connection with auto glass repairs made by independent or dealer franchised auto glass repair shops is in violation of the Consent Decree of 1963. To continue to allow this practice is neither fair nor reasonable.

Any auto insurer that contracts with a third party auto glass claims administrator that uses a network participation agreement, where any two or more competitors participate, that has the effect of fixing, establishing, maintaining or otherwise controlling the prices to be charged by independent or dealer franchised auto glass repair shops for the repair of damaged automobile vehicles or for the replacement parts or for the labor rates in connection therewith is in violation of the Consent Decree of 1963. To continue to allow this practice is neither fair nor reasonable.

Network participation agreements must remain free of any specific price fixing but may contain wording such as agreeing to only charge reasonable rates for parts and labor. Auto insurers can only negotiate specific pricing with one entity that does not include more than one competitor at a time.

The “ask” is to enforce the laws already on the books.