FTC Pushed to Crack Down on Companies That Ruin Hardware via Software Updates
A coalition of 17 consumer groups is urging the FTC to regulate smart device manufacturers over practices like "software tethering" and subscription fees, which threaten consumer rights and product functionality.
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A coalition of consumer groups, activists, and lawmakers is urging the Federal Trade Commission (FTC) to address practices by smart device manufacturers that undermine consumer rights. In a recent letter, 17 organizations, including Consumer Reports and iFixit, highlighted issues such as "software tethering," where firmware updates render devices less functional, and the imposition of subscription fees for previously accessible features. These practices contribute to a growing concern that consumers do not truly own the products they purchase, as manufacturers can limit functionality or support at any time. The letter cites specific examples, such as Peloton's fee for used bike owners and a baby bassinet company that locked features behind a paywall. The coalition argues that without clear FTC guidance and enforcement, consumers face a "death by a thousand cuts" regarding their rights. Although the FTC has made some inquiries into these issues, critics note that its actions have often been superficial, lacking the necessary resources to tackle broader problems like monopolization and privacy violations. The groups believe that stronger federal oversight could help stabilize the smart hardware market, which has become increasingly problematic in the age of cloud computing.
- A coalition of 17 consumer groups is pushing the FTC to regulate smart device manufacturers.
- Concerns include "software tethering" and subscription fees that limit device functionality.
- The FTC has previously taken limited action but lacks the resources for comprehensive enforcement.
- Consumer rights are at risk as manufacturers can easily alter product functionality post-purchase.
- Clear guidance from the FTC is deemed necessary to protect consumers in the evolving tech landscape.
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- Many users express frustration with devices becoming unusable due to software updates or manufacturer control, emphasizing the need for regulations to protect consumers.
- There is a call for certifications or mandates that ensure devices can operate independently of manufacturer servers, promoting local functionality.
- Several commenters share personal experiences of devices being rendered useless or significantly limited due to forced updates or subscription models.
- Some advocate for legal changes that would require manufacturers to maintain functionality for a set period or provide open access to firmware after a product reaches its end of life.
- Concerns are raised about the FTC's effectiveness and authority in enforcing regulations against these practices.
36 commentsThere's no excuse for an appliance to brick itself or lose functionality just because of the manufacturer's remote action. When I buy a device, I don't want a perpetual, tethered relationship with the manufacturer in order to work the device. I don't want it to ask the manufacturer for permission to run every day. I don't want it to be dependent on the manufacturer to keep it alive. I don't want to create an account. I don't want to log in to the manufacturer's servers. I don't want them to know my IP address or my home address. Leave me alone, I'm just not that into you!
A hardware device should work on day 10,000 just as it worked on day 1. If you as a company can't do that, you should not be able to sell the device (EDIT: OR at least you should be required to prominently mark the devices as "dependent on the manufacturer's servers")
It's clear just from this thread that different people care about different things. And I'd rather see a certification that never gets used, than a whole kind of product removed from the market because the FTC got it wrong, and now it doesn't make sense to produce it.
Just not worth the hassle.
I pretty much avoid newer cars for similar reasons. The ones I drive have no annoying screen. It is easy to setup a Bluetooth phone connection to either the factory radio, or an easily installed one. And I can do most repairs, need never talk to a dealer, they go for 100, often 200k miles after I buy them, get great fuel economy, and it goes on and on. I would be crazy to buy a new car.
The rest of what one might need?
Got a phone for that. In a pinch, an older car phone powered by a current phone hot spot works great too.
Music?
Got all the tunes I need on a storage device. Or pop a CD in. I like CD media, and this year it outpaced digital downloads.
Good. I like vinyl too.
I see people struggle with a lot of this stuff. No thanks. My life is nowhere near as enriched relative to the costs and risks.
Years ago I gave them a separate guest network / vlan to use, with only 5mbit of bandwidth.
The only thing I have left is some ip cameras and my roborock vacuum.
We seriously need a local first law that enables all these devices to work 100% on local wifi.
EFuses enable awful anti-consumer "features" like preventing firmware downgrades, blacklisting compromised cryptographic keys, and bricking devices remotely.
A company introducing a product that requires a connection to their service MUST maintain utility and features at the same or better for at least 7 years after the hardware product is last sold at a retail establishment (equal or expanded features and lower cost).
At whatever time they reduce features or increase cost beyond a faster level of inflation, they are required to release all related current source code, comments, documentation, test suites, etc. required to make usable all product features, into the public domain.
At that point, all parties are also fully permitted to use any measures to reverse engineer or otherwise hack the source code and firmware.
Simple: You maintain it, it's yours as long as you want. You stop maintaining it, everyone else can do it for you.
Let the bean counters trying to cut this month's bottom line costs fight with the IP lawyers trying to hide everything forever.
[edit: typos]
But hey I got paid $10 for my trouble in a class action lawsuit.
Cloud(read IoT fever) at least can be mitigated by somehow mocking the thing the device is looking for, the unpredictable AI mocking is …
This does not have to be a release. But at a trigger point. EOL announcement, or on an update that removes previously available features, or after 2 years after the first sale of the device.
There should be zero exceptions. If a hardware provider can’t do this they should be forced a full refund of the device and any software components bought tied to said device.
Is this like some obscure government rule where the FTC can't do something until they receive a letter in the mail? What is this world we live in? Are they not aware of what is happening in the world? Do all government agencies enforce their mandates by mail order?
Regarding annoying paywalls, it's ironic that the page says "Checking your browser before accessing this site.", "Please allow up to 5 seconds..." and then keeps showing the wait sign indefinitely.
I guess Techdirt site could be a subject to FTC push?
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