Ramblin’ Rhyno: Are the Big Guys Playing Fair? The HVAC Price-Fixing Lawsuit

The sun is finally starting to dip behind the trees, and the crickets are just beginning their nightly shift. I’m sitting out here on the porch, sales guy Chelsea boots off, just watching the world slow down for a second. It’s one of those rare moments where the phone isn’t buzzing and the “windshield time” thoughts finally have room to settle.

But as I sit here, my mind keeps drifting back to a specific folder in my inbox. You know the one. It’s the folder where I’ve been filing those “Price Adjustment” notices for the last six years.

Starting around 2020, those emails became as regular as the seasons. 5% here. 8% there. “Effective immediately” has so far became the phrase of the decade. We were told it was the pandemic. Then it was the supply chain. Then it was the cost of raw copper and aluminum. Then it was the SEER2 transition and then the A2L transition.

We nodded. We grumbled. We adjusted our margins. And most importantly, we went into our customers’ offices, then our contractors into their customer’s living rooms and looked them in the eye. We explained why the unit they quoted six months ago was now two grand more expensive. We took the heat because we trusted the guys at the top were just navigating the same storm we were.

But lately, a new headline has been making the rounds, and it’s enough to make even the most patient distributor sales rep and contractor want to throw a manifold gauge across the yard.

The Lawsuit That’s Shaking the Foundations

There is a federal class-action lawsuit currently moving through the courts: Berg v. Robert Bosch et al.: and it’s alleging something that a lot of us have whispered about at the supply house counter but never wanted to believe.

The lawsuit claims that the big players: Trane, Carrier, Daikin, Bosch, Lennox, Rheem, and AAON: weren’t just reacting to the market. It alleges they were coordinating.

We’re talking about seven companies that control roughly 90% of the HVAC market in the U.S. The allegation is that since January 2020, these manufacturers engaged in a “price-fixing conspiracy” to artificially inflate the cost of equipment.

According to the filings, these price hikes weren’t just the result of “unprecedented times.” The data suggests that prices increased about 8% more than what could be justified by the actual costs of materials, labor, and inflation.

When I read that, I felt a knot in my stomach. Not because I’m a lawyer or an economist, but because I’m a guy who values relationship equity above everything else. I grew up in a small town family HVAC company and worked my way through college and following that I have worked for four different distributors over the last 16 years and myself and all of my fellow employees have always trusted that increases we were tasked to help pass on and justify to our contractors were because the market was forcing it to happen. We believed that the manufacturers were doing what they had to do to be able to do business fairly across the board.

Signaling in Plain Sight

One of the most interesting (and frustrating) parts of the lawsuit is how they allegedly pulled this off. It wasn’t necessarily some smoke-filled room in a basement. The claim is that they used “public signaling.”

The lawsuit points toward industry publications: the same ones we all read: as a tool for coordination. One manufacturer would announce a price hike, and like clockwork, the others would follow suit within a week or two. It also mentions an information-sharing app launched by AHRI in 2020 that allowed them to monitor each other’s moves with surgical precision.

They used phrases like “industry pricing remains disciplined.” To a suit in a boardroom, that sounds like smart business. To a contractor in a 130-degree attic, it sounds like someone’s hand is in your pocket.

The Person(s) in the Middle

Here is the part that burns me: the manufacturers reps, distributors and contractor are the ones in the middle who carry the burden of proof through our chain of customers.

When a manufacturer raises prices, the manufacturer’s rep down through the distributor has to pass it on. When the distributor passes it on, the contractor has to explain it to the homeowner. Distributors and contractors are the face of the industry. We are the ones who build the long-game trust with the families in our communities.

When we tell a contractor they then tell the homeowner that a price increase is unavoidable due to “market conditions,” we are putting our own reputation on the line to the contractor, who in turn is doing the same with his customer. We are both vouching for the integrity of the entire supply chain.

If it turns out that these increases were coordinated: that the “market conditions” were actually manufactured conditions: it doesn’t just hurt our wallets. It hurts our credibility.

Trust. Reputation. Consistency.

Those are the three things you can’t buy, but you can lose them in a heartbeat if people think they’re being played.

A Matter of Relationship Equity

In the HVAC R&D Podcast world, we talk a lot about the “ecosystem.” We have the manufacturers, the manufacturer reps in some cases, and then the distributors, and the contractors. When it works, it’s a beautiful thing. It’s a machine that keeps the world comfortable and healthy.

But a machine only works if the gears aren’t grinding against each other.

From the distributor side, I know how hard it is to maintain those contractor relationships when prices are a moving target. You want to be the hero. You want to provide the best value. But you’re caught between a rock and a hard place.

From the contractor side, you’re just trying to keep your head above water while providing for your team. You need to know that when you buy a piece of equipment, you’re paying a fair market price: not a price that was agreed upon in a “disciplined” game of follow-the-leader.

If these allegations hold water, it’s a massive breach of trust. It tells us that while we were out there grinding through some of, if not, the toughest years our industry has ever seen, the guys at the top might have been using the chaos as a cover to pad the bottom line.

Moving Forward: Trust but Verify

So, where do we go from here?

First, we don’t jump to conclusions, but we do pay attention. This lawsuit is still a set of allegations. These companies will have their day in court to explain their side. But the fact that a judge let this move forward tells us there’s enough smoke to justify looking for a fire.

Second, we focus on what we can control. We can’t control what happens in a boardroom in Fort Smith or Indianapolis, but we can control how we treat our customers. We can be transparent. We can show them the “why” behind the numbers as best we can based on the information we have.

Third, we stay connected. This is why the #TradeCrew exists. When we talk to each other, when we share what we’re seeing in different territories, we become harder to fool. We become a community that demands better from the brands we support.

The Long Game

I’ve said it a thousand times: in this industry, reputation travels faster than any sales pitch ever will.

The big manufacturers have built incredible brands over decades. They’ve pioneered technology that has literally changed the way we live. But no amount of R&D can replace the trust of the men and women who actually install the equipment.

If you’re a contractor reading this, keep your chin up. I know it’s been a rough few years of playing messenger for bad news. If you’re a distributor, keep fighting for your customers.

We’re the ones who keep the lights on and the air moving. Whether the big guys are playing fair or not, we’re going to keep doing the right thing. Because at the end of the day, when I’m sitting on this porch, I want to know that the work I did and the words I said were honest.

That’s the only way to win the long game.

If you’re feeling the weight of the grind lately, maybe it’s time to just take a minute to step back and remember why we do this. It’s about the people. It’s about the crew.

Stay grounded. Stay direct. And keep your eyes open.

Closing Thought

The truth has a funny way of coming out eventually. Whether it’s through a pressure test or a legal deposition, the leaks always show up. Until then, we keep our tools sharp and our integrity sharper.

In this industry, you’re either part of the solution or you’re part of the problem. There is no middle ground when it comes to trust.

What’s your take? Have you seen the “discipline” in pricing in your area, or do you think this is just a legal reach? Let’s talk about it.

I’ll see you out there. 🦏💪

Ramblin’ Rhyno, out. Peace Y’all.

Want to keep the conversation going? Check out our latest episode of the HVAC R&D Podcast or check out the resources in the HVAC R&D Resource Hub and remember that you’re part of something bigger. Follow the Ramblin’ Rhyno Newsletter for more reflections on the trade, or contact us to share your story.