FTC Raises Concerns Over Smart Device Manufacturers' Compliance with Warranty Act

https://icaro.icaromediagroup.com/system/images/photos/16407745/original/open-uri20241127-18-4ubos?1732733174
ICARO Media Group
News
27/11/2024 18h26

### FTC Warns of Potential Breach of Warranty Act by Smart Device Makers

The Federal Trade Commission (FTC) has issued a stark warning to manufacturers of smart devices, stating that they may be breaching the Magnuson Moss Warranty Act by failing to disclose the duration of their software support. This directive follows an in-depth examination of 184 smart products across 64 categories, including common household items such as soundbars, video doorbells, breast pumps, smartphones, home appliances, and garage door opener controllers.

The FTC report highlighted a troubling discovery: a significant majority of the analyzed devices—163 out of 184—did not have clear information regarding the length or end-date of their software support on their product webpages. In stark contrast, only 11.4 percent of the devices provided such crucial details to potential buyers. Furthermore, even when support information was available, it was often hidden in less accessible areas such as specs, support, FAQs, or footnotes, rather than prominently displayed on the product page.

Some manufacturers employed ambiguous language that left much to interpretation, using terms like "lifetime technical support," "as long as your device is fully operational," and "continuous software updates," without specifying clear timelines. The FTC found glaring inconsistencies, such as a device page claiming "lifetime" support, only for further investigation to reveal that security updates had ceased in 2021.

The FTC also raised concerns about AI-generated overviews. In one case, Google's AI Overview misleadingly indicated that a smart gadget would receive software support for 3-6 months, which turned out to be a misinterpreted reference to the device’s battery life. Subsequent corrections by the AI Overview showed a lack of reliable information on the product's software support duration.

In response to these findings, the FTC has urged law enforcement and policymakers to delve deeper into these practices. The Magnuson Moss Warranty Act mandates that warranties on consumer products over $15 must be clearly disclosed before sale, including detailed descriptions of the products, parts, or characteristics covered by the warranty. Not adhering to this could potentially mislead consumers, a violation of both the Warranty Act and the FTC Act.

This probe by the FTC comes on the heels of a September letter from several advocacy groups, including iFixit, Consumer Reports, and the Electronic Frontier Foundation. These groups have called on the FTC to provide clear guidelines on "software tethering," where device functions are dependent on embedded software linked to the manufacturer’s servers.

Lucas Gutterman of the US PIRG Education Fund and a signatory of the September letter, expressed hope that the FTC would take decisive action, referencing past interventions like the 2022 case against Harley-Davidson for illegal warranty policies restricting customer repairs. Gutterman highlighted the vicious cycle consumers face with disposable products and the urgent need for reliable software support disclosures.

As the Internet of Things expands, the risk of consumers facing bricked devices or loss of features due to lack of support becomes increasingly concerning. From smart bassinets to home gardening systems, many have experienced the frustration of unsupported smart devices. There is a growing call for government-mandated transparency to ensure consumers are well-informed before making a purchase.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

Related