The Manufacturers’ Qualification and Validation Program (MQVP) has called on the leaders of the collision repair industry to help stop the use of fraudulent parts in the repair process. John Arvay, executive director of MQVP sent a letter to the heads of the major industry associations on Sept. 27 asking them to assist in MQVP’s efforts to educate shops on the importance of third-party certification programs.

The letter went to the heads of several industry associations, including the Automotive Service Association (ASA), the Collision Industry Conference (CIC), and Society of Collision Repair Specialists (SCRS).

This follows MQVP’s unveiling of its seven-point anti-fraud campaign. The plan includes working with insurers and body shops to help recognize fraudulent MQVP parts, launching an education campaign, and developing product identification and package labeling technology to help track parts in the collision industry supply chain. MQVP has filed several lawsuits involving improper use of its trademark.

The anti-fraud campaign is in response to an increased number of parts bearing fraudulent MQVP certifications. “Through our contacts in the industry and our research, we have found that there has been a misrepresentation of product in the repair industry,” says Arvay. “That has led to frustration at the shops. We felt it was important to bring this to the attention of the association leaders, and ask them help us make their constituents more aware of the problem.”

MQVP was created to evaluate manufacturing companies that supply the collision repair industry. The company was formed in the aftermath of the State Farm-Avery lawsuit over use of non-OEM parts.

There are a number of factors that encourage distribution of fraudulent parts, Arvay says, including the competitive nature of the industry, the lack of traceability in the supply chain, and some trends in the insurance industry. Arvay’s letter specifically calls attention to DRP programs that require the use of specific parts suppliers, which he says, “eliminates the collision repair shops free choice of supply.”

“We have spoken to some insurers, and they are concerned about this as well,” Arvay said.

The key to minimizing this type of fraud is to have complete traceability in the parts supply chain, from the point of manufacture to the point where the part is installed. MQVP wants to emulate the traceability systems developed by the OEMs, by using bar code labeling and a Web-based database for part tracking. “[I]f the aftermarket parts are compared to the OEM parts, then the standards for which they should meet must be the same as the OEMs,” Arvay said in his letter.

“The shops are very important, because they are the final step in the supply chain,” he said. “They have the direct contact with customers, and their reputation is on the line.”

According to Arvay, shops should ask that their parts suppliers provide traceability information on the parts, and should review their suppliers’ performance.

“It’s very important that there be a third-party, independent certification program that helps in these efforts of traceability and quality control,” he said.

Visit www.mqvp.com for more information.