On Tuesday, November 26, 2024, the Federal Trade Commission (FTC) released a report focusing on the duration of software support commitments provided by manufacturers of connected devices. The analysis covered a diverse range of 184 products, including smartphones, health monitors, and home appliances. A significant finding from the FTC report highlights that nearly 89% of manufacturer websites lacked clear information regarding the length of software updates for these devices, which can critically impact their functionality over time.
In compiling its report, the FTC utilised a method that emphasised the manufacturer's product web pages, steering clear of warranty documentation and supplementary information. This approach was predicated on the assumption that the average consumer is unlikely to conduct in-depth searches for such details. The study revealed that only 11% of the evaluated web pages explicitly disclosed the duration of software updates. Although subsequent Google searches managed to retrieve pertinent information for about 33% of the products, the initial lack of transparency was still deemed concerning.
In light of their findings, FTC staff articulated that the failure of manufacturers to disclose the duration of software support would warrant increasing scrutiny from both policymakers and law enforcement. The report suggested that such omissions might violate the Magnuson-Moss Warranty Act (MMWA) or Section 5 of the FTC Act. As FTC personnel clarified the implications, they noted that evaluating this failure involves consideration of both consumer injury and potential benefits derived from the lack of disclosures.
The report is particularly timely, coinciding with continuing advancements in the automotive industry where vehicles increasingly depend on computer software updates for essential operations. The automotive sector has faced various legal hurdles surrounding over-the-air (OTA) updates, leading some states to implement regulations that require Original Equipment Manufacturers (OEMs) to compensate dealers aiding consumers affected by OTA updates. Recent conversations surrounding the telematics systems in vehicles have intensified, especially following announcements in 2022 regarding the phasing out of 3G networks that support these systems.
Moreover, the right to repair movement has also gained traction, shining a spotlight on how vehicle telematics systems can transmit vehicle-generated data wirelessly to manufacturers and dealers. Legislative movements in states like Massachusetts and Maine aim to provide vehicle owners and independent repair facilities access to this invaluable data. However, uncertainty engulfing OEMs persists, particularly as they await a ruling on the constitutionality of the Massachusetts right to repair law, which is currently in the judicial system after a 2021 bench trial.
This confluence of issues, from software support transparency to telematics and consumer rights, is shaping a more intricate landscape for manufacturers and consumers alike in the age of connected devices and increasing automation.
Source: Noah Wire Services