FTC Urges Smart Device Makers To Disclose Software Update Lifecycles

Makers of software-enabled products have been put on notice by the US Federal Trade Commission (FTC) for failing to disclose how long their products will receive software updates.

A paper [PDF] published on Tuesday from the trade watchdog observes that while non-connected devices generally last until they fail, so-called smart products have a lifespan that depends on software and network services.

"If a manufacturer fails to disclose how long it will support a product, consumers have no way of knowing how long the product will last – or how long it will work as intended or marketed," the paper states.

Makers of software-enabled products in the US are obliged to provide this information, but most do not. According to the FTC, manufacturers of 163 out of 184 smart products analyzed – including hearing aids, security cameras, and door locks – failed to publish information about the duration of software updates on their websites.

That represents a potential violation of the Magnuson-Moss Warranty Act, which requires written warranties and other disclosures for products costing $15 or more. It could also violate the FTC Act if product makers misrepresent the amount of time a product will last, or how long features will be available.

"Consumers stand to lose a lot of money if their smart products stop delivering the features they want," argued Samuel Levine, director of the FTC's Bureau of Consumer Protection, in a statement.

"Our study shows that nearly 89 percent of manufacturers of products we examined failed to post this information prominently or make it readily available. When shopping for smart devices, consumers should ask questions and consider how long their product will last."

Separately, FTC staff checked to see whether software update information could be gleaned by internet searches. They were unable to find support information for two thirds (124) of the devices surveyed.

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The report follows a letter sent to the FTC in September by Consumer Reports and US Public Interest Research Group, in which the advocacy groups asked the regulator to issue guidance on smart devices and failures induced by lack of software availability.

"Consumers increasingly face a death by a thousand cuts as connected products they purchase lose their software support or advertised features that may have prompted the original purchase," the letter reads.

The advocacy groups' letter goes on to cite various examples of smart products that have been bricked or lost functionality as a result of software or business policy changes. These include: Happiest Baby's Snoo connected bassinet, Spotify's Car Thing, and Masterbuilt's iKamand.

The issue also surfaces when smart device companies go out of business, as happened with Insteon and Connected Life Labs. Purchasers of software-tethered products may be unable to continue using those products in the absence of software updates or cloud services.

When Consumer Reports surveyed 21 major appliance makers earlier this year, it found that only three told consumers how long they could expect to receive software updates. ®