FTC Warns of Smart Device Security Risks Due to Unclear Update Policies

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The Federal Trade Commission (FTC) has raised an alarm about manufacturers' practices regarding software updates for smart devices, following a comprehensive review of 184 smart products ranging from hearing aids to security cameras and smart locks.

According to the FTC's recent staff report, approximately 89% of surveyed smart products failed to specify how long they would receive software updates on their websites. This lack of transparency poses serious concerns for consumers, as devices without regular updates can become vulnerable to security threats or potentially stop functioning altogether.

The investigation revealed that many manufacturers provide minimal or no guarantees about ongoing software support. This becomes particularly problematic for devices dependent on company-operated servers, as demonstrated by recent cases like VanMoof's e-bikes and Amazon's Cloud Cam discontinuation.

The FTC suggests that this lack of disclosure may violate existing consumer protection laws. For products sold with written warranties priced above $15, the Magnuson Moss Warranty Act requires manufacturers to provide warranty information before purchase. The FTC Act may also be violated if companies make claims about product usability without disclosing update policies.

While the FTC has not announced specific actions, their investigation marks increased regulatory attention to smart device longevity and consumer protection in the growing Internet of Things market.

For comparison, some manufacturers like Apple set industry standards by providing extended software support. iPhones typically receive updates for 5-7 years, while iPads and Macs can receive support for up to 8 years.

The FTC's examination highlights the need for greater transparency in the smart device industry, particularly regarding long-term software support commitments that affect device security and functionality.