FTC Highlights Manufacturer Negligence on Smart Device Software Update Transparency

In November 2024, the FTC revealed alarming gaps in transparency for smart device software updates, urging manufacturers to clarify update durations or face legal consequences.

FTC Findings on Smart Device Updates

In November 2024, the Federal Trade Commission (FTC) released an insightful staff perspective paper titled “Smart Device Makers’ Failure to Provide Updates May Leave You Smarting.” This report sheds light on findings from a recent survey that assessed the software update practices of 184 smart devices, uncovering notable deficiencies in the transparency of many manufacturers.

Lack of Transparency in Software Updates

One of the stark revelations from the FTC’s analysis is that around 89% of the websites belonging to these manufacturers do not provide clear information on the duration of software updates.

This lack of communication raises concerns that when manufacturers discontinue updates, the smart functionality of these devices might shrink, their security could be at risk, or they may ultimately stop working.

Legal Consequences for Manufacturers

Furthermore, the paper delves into the potential legal consequences for manufacturers who neglect to inform consumers about update timelines.

The FTC suggests that failing to disclose this information could be interpreted as a violation of the Magnuson-Moss Warranty Act.

This Act requires that written warranties for consumer goods priced above $15 be readily available to prospective buyers prior to completing a purchase.

Additionally, the FTC warns that a lack of clarity around software updates could breach the FTC Act, especially if manufacturers make either direct or implied claims about how long their products will remain usable.

By highlighting these gaps in practice and regulation, the FTC urges consumers to seek clarity before purchasing smart devices, emphasizing the importance of staying informed about software support and product longevity.

Source: Natlawreview