Makers of software-enabled products in the United States have been issued a stern warning by the US Federal Trade Commission (FTC) for their failure to clearly disclose the duration of software updates for their products, leaving consumers in the dark about the lifespan of their devices.
A comprehensive paper published by the trade watchdog this week points out that, unlike non-connected devices that typically last until they fail, the longevity of smart products is heavily reliant on ongoing software and network services. This shrouds the devices’ lifespan in ambiguity, making it impossible for consumers to gauge how long they will continue to function as intended.
“The absence of clear disclosure about software update duration denies consumers the ability to make informed purchasing decisions,” the paper states, emphasizing the need for transparency. “If a manufacturer fails to provide this crucial information, consumers are left guessing how long their product will remain functional, and whether its features will continue to operate as marketed.”
The FTC’s investigation revealed a staggering 89% of smart product manufacturers, including those of hearing aids, security cameras, and door locks, failed to publish software update duration information on their websites, in blatant disregard of their obligations under the Magnuson-Moss Warranty Act. This glaring omission could also be seen as a misrepresentation of the product’s lifespan and viability, potentially violating the FTC Act.
Samuel Levine, director of the FTC’s Bureau of Consumer Protection, underscored the gravity of the situation, stating, “Consumers stand to lose significant amounts of money if their smart products stop delivering the features they want, due to the manufacturer’s failure to provide necessary software updates.”
The FTC’s study also attempted to gather software update information through internet searches but was unable to find any for nearly two-thirds (124) of the devices surveyed. This dismal result highlights the pervasive nature of the problem and underscores the need for industry-wide changes.
This development comes on the heels of a letter sent to the FTC in September by Consumer Reports and US Public Interest Research Group, calling on the regulator to issue guidance on the responsibilities of smart device manufacturers regarding software availability and failures. The advocacy groups argued that consumers are increasingly vulnerable to “death by a thousand cuts” as connected products lose software support or essential features.
The letter cites several egregious examples of smart products that have been rendered obsolete or lost functionality due to software or business policy changes, including the Happiest Baby’s Snoo connected bassinet, Spotify’s Car Thing, and Masterbuilt’s iKamand. The issue is further exacerbated when smart device companies go out of business, leaving consumers high and dry.
A recent survey by Consumer Reports, which polled 21 major appliance makers, found that only three companies provided clear information on how long consumers could expect to receive software updates for their smart appliances.
