Internet-connected devices may initially work as advertised, but users too often face feature downgrades, unexpected subscription fees, or even “bricked” devices when support ends. A coalition of 17 consumer advocacy groups is calling on the Federal Trade Commission (FTC) to set clear standards and end consumer-harming practices.
In a letter to the FTC, the groups, led by Consumer Reports (CR) and the US Public Interest Research Group (PIRG), request standards for companies that use software to control and limit device functions after a consumer buys the device.
The practice when manufacturers use software to control and limit the device’s functionality after a purchase is known as “software tethering.” Some of these practices harm users.
One example is the $1,695 Snoo, the high-tech connected bassinet from Happiest Baby, which decided to lock some originally advertised features behind a new $19.99 monthly subscription.
While customers who bought the bassinet before the change didn’t have to pay, they couldn’t pass the features on when reselling or giving it away.
Another example is Spotify’s Car Thing, which retailed for $89.99. After 22 months of initial sales, the company ended its support and rendered the devices nonfunctional through software.
Initially, Spotify didn’t offer any refund for owners but later did provide customers who complained refunds on their Spotify subscriptions.
Ars Technica reported that Peloton added a $95 activation fee for used equipment when buying secondhand.
“Manufacturers increasingly use software to lock us into only using our tech in ways that just-so-happen to generate the most profits for them,” Lucas Rockett Gutterman, Designed to Last Director with U.S. PIRG, said.
“If we want to stop the tech industry from pushing us into replacing products that still work, we need to stand up for consumers’ right to get what we’ve paid for in the age of connected devices.”
So, what can the FTC do? According to the letter, the commission has several tools to help establish standards and norms.
First, companies should be required to disclose a guaranteed minimum support time on the product packaging, including security updates, anticipated engineering, and cloud resources to keep the product functional to a certain date.
Second, groups urge the FTC to require companies to ensure that a product’s core functionality works even if the internet connection fails or the software stops updating.
“An e-bike should start without a connection to the server or control from an app. An oven should maintain its ability to heat food, and a thermostat should still retain the ability to control an HVAC system,” advocates say.
The third item is to encourage tools and methods for reusing when software support ends. Those could include software for repurposing hardware for offline use or releasing hardware upgrades to continue support.
Fourth, the FTC should protect the so-called “adversarial interoperability” when other developers or companies create tools or software for old devices, extending their lifespan or converting them to new uses.
Consumer groups argue that reusing could ensure that far less hardware turns to e-waste once it loses support.
The last item encourages educational programs for manufacturers to build longevity into their product designs. Groups suggest the FTC create a clear list of design principles promoting the product’s longevity.
“Nobody wants a drawer full of broken junk – that’s why we keep fighting for our right to fix everything. But too often, gadgets become expensive paperweights not because the hardware breaks but because companies ended software support,” Liz Chamberlain, Director of Sustainability at iFixit, said.
“Customers get left with no way to save or repurpose their hardware. It’s time for the FTC to step up and protect consumers from these shady, wasteful business practices.”
Justin Brookman, director of technology policy at CR and a former policy director of FTC’s Office of Technology, Research, and Investigation, advocates for clear standards for what consumers can expect when purchasing a connected device.
“Too often, consumers are left with devices that stop functioning because companies decide to end support without little to no warning. This leaves people stranded with devices they once relied on, unable to access features or updates,” Brookman said.
Brookman hopes the FTC will step up and “ensure that businesses not only market these devices transparently but also decommission them in a way that respects the consumer’s investment and trust.”
