A fragmented web of state policies on vehicle diagnostics access is creating compliance and cost pressures for independent auto repair shops as over-the-air software updates become standard across modern vehicle platforms. The divide reflects deeper tensions between consumer repair rights, automaker cybersecurity interests, and data governance - with no uniform federal framework yet in place.
Background
As of early 2025, 20 states had active right-to-repair legislation, reflecting growing momentum behind broader access to repair information and vehicle data.1REPAIR Act and State Laws: What automotive OEMs must prepare for The movement traces its roots to a 2012 Massachusetts law requiring OEMs to share diagnostic and repair information with independent shops, but the proliferation of connected, software-defined vehicles has substantially raised the stakes.
OTA updates, once a novelty offered by tech-forward brands like Tesla, are now deployed by mainstream automakers across the board - from Ford and BMW to Hyundai and Toyota. The global automotive OTA market was valued at USD 5.06 billion in 2024 and is projected to reach USD 21.41 billion by 2033, at a CAGR of 17.9%, according to Business Research Insights. As automakers increasingly use this channel to modify vehicle behavior remotely, the data available to non-dealer technicians is narrowing.
While infotainment systems can typically receive OTA updates via Wi-Fi or cellular connections, safety-critical functions such as powertrain control, steering, throttle, and engine management operate on separate, protected networks. Updates to those modules require physical access through the OBD-II diagnostic port at a dealership. This architectural split creates a two-tier repair environment in which independent shops can address some faults but are locked out of others entirely.
Details
The Right to Equitable and Professional Auto Industry Repair Act - known as the REPAIR Act - was reintroduced in the House in February 2025 and later introduced in the Senate in April 2025. The bill would ensure that OTA updates do not render aftermarket parts inoperable and would require manufacturers to make critical repair information, tools, and parts available to independent repair facilities.
The legislation aims to guarantee the rights of vehicle owners and their designated repair facilities to maintain and repair their vehicles while upholding the same cybersecurity standards, intellectual property protections, and vehicle safety standards that manufacturers apply to their dealerships. According to a July 2025 national poll cited by the Auto Care Association, more than 83% of Americans support the REPAIR Act, with 84% of Republicans and 82% of Democrats in favor.
The financial toll of restricted data access on the independent repair sector is measurable. A 2024 independent survey found that 51% of independent repair shops send up to five cars each month to dealers due to data restrictions, and 63% of shops reported experiencing a restriction on repair data daily or weekly. Vehicle data limitations cost independent repair shops an estimated $3.1 billion each year, according to the Auto Care Association.
At the state level, implementation remains uneven. Maine's right-to-repair law took effect January 5, 2025, but full implementation has stalled amid legal and regulatory disputes. The law requires creation of an independent entity to administer the data-access platform, but that entity has not yet been established. In Massachusetts, a federal district court in February 2025 rejected a long-running challenge by the Alliance for Automotive Innovation to a 2020 ballot initiative amending the state's telematics data access law, though an appeal before the First Circuit remains pending.
The training and tooling burden on independent shops is intensifying alongside these regulatory shifts. As vehicles grow more complex, shops are struggling to keep pace - 30% of shops in a December 2025 survey of 500 repair facilities cited staying current with diagnostic tools and software updates as a challenge. Independent repair shops often must purchase software and tools from multiple vehicle manufacturers; one shop reported spending more than $400,000 in 2024 on education, equipment, and facilities.
Independent workshops should prepare for more OTA-related faults as updates become more frequent and complex; while some failures can be reset with diagnostic tools, others may require OEM-level intervention.
Outlook
With the Alliance for Automotive Innovation expected to file its reply brief in November 2025, the First Circuit could hear argument in the first half of 2026 and issue a decision before year's end. That ruling could set a significant precedent for how telematics data access laws withstand federal preemption challenges in other states.
Support among small business groups for federal clarity has grown where state efforts stall, but a uniform national framework has not yet materialized. Until federal legislation advances or courts resolve the preemption questions, independent shops will continue navigating a state-by-state compliance landscape while managing rising tool costs and accelerating vehicle software complexity.
