Connected devices rob consumers of ownership. We have a fix.

Consumers no longer own their physical products when those products adopt AI and internet connectivity. Those connected products also engender new cybersecurity risks. Smart products are first and foremost a cybersecurity risk to individual users, but also affect national security, as these products create a wide attack surface for nation-states to use for attacks and information gathering.

Connected devices are also a new challenge for ownership rights, as the features consumers are paying for are tied to a server controlled by the manufacturer. Consumers have no idea how long they can expect manufacturers to maintain or secure the features enabled by connectivity, nor do they understand the limits of these products when they purchase them as shown by the chart below.

Finally, these devices pose privacy risks as data about their inquiries, their habits and their lives get uploaded to companies that make no promises about how this data will be used or protected. At Consumer Reports we are concerned about the threat that software tethered devices pose to cybersecurity, ownership, and the environment. 

As business invests in AI these products will become more common, and the data gathered from them could be used against consumers. For all of these reasons, Consumer Reports is focusing on the potential harms of software tethering and taking several steps to address the issue. In 2024 we called on the Federal Trade Commission asking the agency to issue clear guidelines for companies that use software to control and limit device functions after a consumer buys the device.

CR also released guidelines for manufacturers, regulators and technology standards bodies that would allow connected and AI products to operate securely even after the manufacturer stops providing support. We have also recently updated our model legislation that would address several harms associated with software tethering. 

The Connected Device Longevity Act requires manufacturers of connected devices to tell consumers how long they plan to support them. It would address cybersecurity risks by requiring manufacturers of connected devices to tell consumers when they stop releasing security updates, and would require businesses such as ISPs and alarm companies to remove devices when they stop receiving security updates.

But there are other problems that are still unaddressed, so we have created the chart below to detail the harms associated with connected consumer devices and some proposals for addressing them. In some cases, using the FTC or state attorneys general to enforce existing UDAP and privacy laws would suffice. To address other harms we’d need to modernize the existing copyright law and develop new laws to protect consumer’s privacy and ability to resell a product.

We encourage consumers to call their state and federal legislators to ask for better laws and regulations associated with software tethered devices before we trade smart features for short-lived products.  

Tethering Harms Example of Harms Potential Fixes
Cybersecurity Risks

  • To consumers
  • To businesses
  • To national security
  • Surveillance by malicious actors
  • Minimum guaranteed support times frame must be reasonable and disclosed*
  • Proactively notify consumers at end of life*
  • Greater enforcement of existing privacy, security, and UDAP laws
  • Require Vulnerability Disclosure Programs
  • Require baseline cybersecurity across the entire product (device, cloud, and app)
Surveillance Risks

  • By manufacturer for profiling (which leads to new harms)
  • By the state
  • By third parties/data brokers
  • Data minimization
  • Disclose sensors and types of data collected by the product as well as what the data is used for and who has access to it
  • Stronger privacy laws and greater enforcement of existing privacy and UDAP laws
  • Push manufacturers to add privacy-preserving features in the app
Loss of Core Functionality

  • Manufacturer stops support
  • Internet or cloud outage
  • Manufacturer goes out of business or purchased
  • Minimum guaranteed support times frame must be reasonable and disclosed*
  • Build resiliency into device so core functionality remains in the wake of cloud or manufacturer outage
  • List features lost when ending support or internet goes out*
  • Support accounting rules that document the cost of connected features
  • Greater enforcement of existing UDAP laws
Loss of Features

  • Manufacturers kill features
  • Business contracts end
  • Require advertised features to be listed and protected for the minimum guaranteed support time frame*
  • FTC says companies should clarify if they are selling a product or subscription
  • List features lost when ending support or internet goes out*
  • Greater enforcement of existing UDAP laws
Require payment for once-free features
  • Prevent companies from charging for advertised features via legislation
  • Greater enforcement of existing UDAP laws
Features Change

  • Algorithm or interface updates can positively or negatively affect the experience
  • New contracts change availability of features
  • Consumers experience a cognitive load when the user interface or settings change
  • Amazon pushes uses to Alexa + and they must manually revert back to Alexa
  • LG TVs get Copilot and can’t go back
  • Roku changes ToS with no opt-out
  • Mini cars revert to original settings after every update forcing the user to reset them
  • Google Home and Alexa perform differently after updates
  • Flock turned on a new feature and changed the way people accessed its cameras and broke CA law
  • Require opt in for potentially unwanted or significant feature changes
  • Require the ability to revert back potentially unwanted or significant feature changes
  • Require manufacturers to separate security updates and feature changes
  • Greater enforcement of existing UDAP laws
Resale Risks

  • Can’t sell without buyer paying fees
  • Data privacy
  • Minimum guaranteed support times frame must be reasonable and disclosed*
  • List features lost when ending support or internet goes out*
  • Laws that prohibit resale fees
Locking consumers into an ecosystem
  • DRM for printers/water filters
  • Features only work within the same brands
  • Update 1201 exemptions
  • Require interoperability or fair and reasonable terms for API access to essential features
* Included as part of the Connected Device Longevity Act

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