HVAC Manufacturers Face Price-Fixing Allegation Lawsuit
Seven major U.S. HVAC manufacturers are now facing a second lawsuit that accuses them of conspiring to inflate prices on their equipment. This latest legal action, filed last month in a Michigan federal court, alleges that the companies worked together to artificially raise and maintain high prices for HVAC systems since the start of 2020.
"Beginning no later than January 1, 2020, Defendants entered into an agreement to fix, raise, and stabilize the prices of HVAC Equipment sold in the United States", the lawsuit claims. "The conspiracy generated unprecedented profit margins for Defendants."
This case was brought forward by Richard Isom, the owner of Air Tech Services, an HVAC contracting company based in Manatee County, Florida. The lawsuit seeks class action status on behalf of other contractors who act as intermediaries between manufacturers and system end users. "As a result of Defendants’ conspiracy, Plaintiff paid artificially inflated prices for the equipment needed to operate his business", the filing states.
Allegations Against Industry Giants
The lawsuit names seven companies - Bosch, Carrier, Trane, Daikin, Lennox, Rheem, and AAON - which together, along with their subsidiaries, reportedly control 90% of the U.S. HVAC market. The complaint asserts that these manufacturers implemented a series of price hikes over six years, resulting in an 8% increase in costs for commercial and residential systems compared to what might be expected in a competitive market.
"That overcharge represents billions of dollars extracted from direct purchasers", Isom’s lawsuit states.
This is not the only legal battle these manufacturers are currently facing. In March, another lawsuit was filed in the same court by a consumer, making similar allegations of price-fixing and also seeking class action status. The companies have denied these claims, with Carrier stating, "We deny the baseless allegations in this lawsuit and will fight it vigorously. Carrier embraces competition and operates lawfully and with integrity." Another manufacturer, Trane, had previously commented on the earlier lawsuit, saying, "We strongly dispute the allegations made in this lawsuit and intend to vigorously defend ourselves against these baseless claims. Trane remains committed to operating with integrity, complying with applicable laws and regulations, and providing value to our customers through our sustainable, reliable solutions."
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Patterns of Coordination
The lawsuits outline how the alleged price-fixing conspiracy was orchestrated. According to the complaint, manufacturers signaled their pricing plans to each other through public statements, industry meetings, and publications like ACHR News, a trade journal. The lawsuit claims, "Defendants used [ACHR News] to announce price increases to the market. Those announcements followed a distinct and revealing pattern. Defendants used ACHR News not merely to announce price increases but to communicate with each other."
Additionally, the companies are accused of sharing sensitive information through a data exchange operated by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), a trade organization whose leadership reportedly includes representatives from the manufacturers. The lawsuit describes the data exchange as a "give-to-get" system: "To receive competitive intelligence about the industry, a manufacturer had to hand over its own non-public, confidential, and proprietary information."
The lawsuit alleges that this coordination occurred in at least 40 instances, stating, "That pattern - repeated, specific, advance disclosure met with consistent follow-on rather than competitive exploitation - is not how rivals behave in a competitive market. It is how co-conspirators confirm adherence to an agreement."
Company Remarks Highlight Alleged Collusion
The complaint cites specific statements from industry executives to support its claims. For example, the lawsuit references remarks made by Lennox CFO Michael Quenzer during a July 2025 conference. "The next [pricing] level will be early next year when we all come out and announce our next full round of price increases", Quenzer is quoted as saying in the lawsuit. "For the balance of the year, I think we’re pretty well set from a price perspective. Next year, we’ll do our annual price increase, and just like we always do, we expect similar results by others."
Both lawsuits are ongoing, and the manufacturers have vowed to contest the allegations. As the cases progress, they will likely shine a light on how pricing strategies within the HVAC industry are developed and communicated. For now, the lawsuits raise significant questions about competition and pricing practices in a highly consolidated market.