Industry Insights

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Are Smart Tech Manufacturers in Hot Water with the FTC?

by | Friday, January 17th, 2025

Smart gadgets are everywhere these days—video doorbells, voice assistants, and even things like floss dispensers and breast pumps. While these devices are all very different, they usually share one big issue.

The U.S. Federal Trade Commission (FTC) is worried because many smart devices don’t tell you when they need updates—or worse, don’t offer updates at all.

Why This Matters

Imagine getting a cool tech gift during the holidays. Now, what if that gift became the way someone hacked into your Wi-Fi? What if your pet camera was used by someone else to spy on you instead of you checking in on your dog? Or what if your new gaming console led to someone stealing your credit card info?

These risks come from one major problem: smart devices rely on software manufacturers to keep updated and supported. If they don’t:

  • The device won’t stay secure.
  • It might stop working as promised.

That’s what the FTC is trying to fix.

What the FTC Found

The FTC looked into 184 smart devices to see how long manufacturers support their products. The results weren’t great:

  • 89% of manufacturers didn’t say how long their devices would be supported.
  • When companies did share this info, it was often hidden or unclear.
  • Many devices didn’t even list their release date, making it impossible to tell if they should still get updates.

Even searching on Google wasn’t much help. For example, one product claimed to have “lifetime support,” but further investigation revealed that updates would end in 2028. Another said the same thing but stopped receiving updates in 2021.

Is This Legal?

The FTC thinks hiding this information might break a law called the Magnuson-Moss Warranty Act. This law says companies have to be clear about what they’re promising in their warranties. For smart devices, that means clearly explaining how long updates will last.

When companies don’t provide updates, even though they’ve promised things like “lifetime support,” it can be misleading and hurt consumers.

This isn’t just a problem for people at home. Businesses also use lots of smart devices, and employees often bring their own to work. Without clear information about updates and security, individuals and businesses could make bad decisions about what devices to buy.

If the FTC gets its way, companies will need to be upfront about updates and support, which will make it easier for people to choose secure, reliable devices.

Stay Secure

Of course, staying informed about your devices is still up to you. That’s where working with an IT team like Compudata helps. We can monitor your tech, update your devices, and ensure your business stays secure.

Want to know more? Call us at 1-855-405-8889 for an IT check-up and better peace of mind.

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