The Federal Trade Commission (FTC) has voiced concerns regarding manufacturers’ lack of commitment to providing software updates for smart devices, highlighting the potential risks of unaddressed security vulnerabilities or total product failure.
This sentiment reflects our ongoing issues raised over the past few years about the true ownership of the smart devices we purchase…
The Reality of Smart Device Ownership
We initially brought this issue to light in 2022.
Companies can introduce new features through firmware updates, but they can equally remove them at any time. This is particularly relevant for devices that depend on a company-operated server. A notable instance is Amazon’s recent decision to discontinue Cloud Cam.
We highlighted this concern again last year when VanMoof, a high-tech e-bike manufacturer, faced financial troubles, leaving the owners of these costly bikes potentially locked out of using them.
Unlocking the bike is Bluetooth-enabled when your smartphone approaches, but it relies on a rolling key code generated by access to a VanMoof server. Without the company, there would be no server, and thus no key code generation, resulting in no ability to unlock the bike.
Fortunately, that situation had a positive resolution.
FTC’s Concerns Regarding Software Support
The FTC has recently echoed these worries. Its staff reviewed the websites of 184 smart products to check the commitments brands made regarding ongoing support and found that most offered little to no guarantees.
A recent FTC staff report indicates that nearly 89% of the surveyed products did not mention on their websites the duration of software updates, which are crucial for maintaining device security and functionality.
The FTC examined 184 different “smart” products—ranging from hearing aids to security cameras to smart locks—to see how long companies would promise to provide updates. If manufacturers cease software updates, the devices may lose their smart capabilities, become vulnerable, or stop functioning altogether.
The agency cautions that this oversight could potentially breach consumer protection laws.
The staff report revealed that not informing buyers about the duration of software updates for officially warranted products may contravene the Magnuson Moss Warranty Act, which demands that written warranties for consumer products priced over $15 be available prior to purchase, along with necessary disclosures. Additionally, neglecting to provide software update information might violate the FTC Act if companies have made explicit or implicit claims regarding the product’s usability period, according to the staff’s perspective.
Ironically, while the FTC has yet to specify its course of action regarding these concerns, its acknowledgment of the issues marks a constructive first step.
Photo by Sebastian Scholz (Nuki) on Unsplash
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