Smart devices have become increasingly common, offering convenience and advanced features. However, the sudden loss of functionality or the introduction of subscription fees after purchase is causing widespread frustration. Consumer advocacy groups are calling on the Federal Trade Commission (FTC) to intervene and establish clear guidelines for how long manufacturers must support these devices. The demand comes as more users experience “death by a thousand cuts” with devices losing critical functions or being rendered unusable altogether.
Consumer Groups Demand Action
In a letter addressed to the FTC’s Bureau of Consumer Protection and Division of Advertising Practices, 17 consumer groups—including Consumer Reports, US PIRG, and iFixit—called for “clear guidance” regarding software tethering, a practice where the functionality of devices depends on the manufacturer’s servers. According to the letter, this practice allows companies to engage in “unfair and deceptive practices” by locking key features behind paywalls or discontinuing support for devices entirely.
The letter highlights the damage caused to consumers by these changes, citing examples such as the Snoo smart bassinet, which suddenly required a subscription for key features, and Spotify’s Car Thing, which stopped working after being bricked by the company. The groups argue that consumers are being unfairly burdened by changes that affect the functionality and resale value of their devices after purchase.
“Death by a Thousand Cuts”
The term “death by a thousand cuts” was used in the letter to describe how seemingly small, incremental losses in a device’s capabilities add up to significant frustration for users. With devices losing critical features or requiring costly new subscriptions, users feel trapped in a cycle of constant expenses for maintaining products they already own. For instance, Peloton recently imposed a $95 “used equipment activation fee,” hindering the resale of secondhand exercise machines. The letter argues that such practices hurt consumers and contribute to e-waste.
Other examples include Oral-B toothbrushes losing their Amazon Alexa functionality and the bricking of Google Dropcams and Amazon Halo devices, leaving consumers with nonfunctional gadgets despite having paid for them.
Proposed FTC Guidelines
The consumer groups propose several actions the FTC could take to protect users and encourage transparency in the smart device market. Among the suggestions is requiring manufacturers to disclose a “guaranteed minimum support time” on product packaging. This would ensure that consumers know in advance how long they can expect security updates and core functionality to be maintained.
In addition to transparency, the letter suggests that manufacturers should guarantee that the core functions of devices will continue to work even if an internet connection is lost or software updates are discontinued. The groups also call for the FTC to encourage manufacturers to design devices for longevity, suggesting that companies should provide tools that allow consumers to repurpose hardware for offline use if the software support ends.
Holding Companies Accountable
The letter also references previous FTC investigations into similar practices, including the 2016 investigation of Nest Labs over the shutdown of the Revolv Smart Home Hub, which left consumers with non-functional devices. Although the FTC didn’t take enforcement action at the time, it expressed concern that rendering devices inoperable would cause significant consumer harm. The letter argues that the problem has only worsened since then and that the FTC needs to take action to prevent further harm to consumers.
Additionally, the groups pointed to the FTC’s 2022 action against Harley-Davidson for voiding warranties when customers used third-party parts. The letter suggests that if voiding warranties for third-party parts is illegal, then software lockouts should also be illegal, as they similarly deprive consumers of the full functionality of their purchased devices.
Smart Devices: A Risky Investment?
As smart devices become more prevalent, their reliance on software and internet connections creates risks for consumers. Companies often discontinue support for products due to financial difficulties, changing priorities, or to push users toward new purchases. Some companies, like printer manufacturers, have been accused of bricking devices when third-party ink is used, all in an effort to increase revenue.
This growing issue has led consumer advocacy groups to push for government intervention. They believe manufacturers should be required to ensure that smart devices are supported for a reasonable period, and that consumers are not left with non-functional products due to company decisions or software changes. By implementing clear rules on support lifespans, manufacturers could be held accountable for maintaining the functionality of the products they sell.
Conclusion
As consumer groups urge the FTC to step in, the debate over smart device functionality and software tethering continues to grow. The outcome could have a significant impact on how tech companies design and support their products, potentially leading to greater transparency and longer-lasting devices. Until then, consumers remain at risk of seeing their expensive gadgets lose functionality or become useless due to unexpected software changes and subscriptions.