Consumer groups urge federal officials to crack down on ‘software tethering’ in consumer products

A coalition of consumer groups is declaring war on “tethered” devices—products that remain under the manufacturer’s control even after a consumer purchases them—and has outlined its concerns in a letter to the Federal Trade Commission.

“Manufacturers are increasingly using software to force us to use technology in ways that are most profitable for them,” said Lucas Rockett Gutterman, director of Designed to Last at US PIRG. “If we want to stop the technology industry from forcing us to replace products that still work, we need to stand up for consumers’ right to get what we paid for in the connected era.”

Too often, consumers find themselves “locked in” with a product that will no longer do what it promises, said Justin Brookman, director of technology policy at Consumer Reports. “Companies that sell connected devices need to acknowledge their responsibility to the people who buy them. The FTC should take action to ensure that companies not only market these devices transparently, but also retire them in a way that respects the consumer’s investment and trust.”

In May, for example, Spotify informed people who purchased the $89.99 Car Thing device that support for the product would end in December 2024 — just 22 months after Spotify first sold the product. Initially, Spotify did not offer any refunds to device owners, but later provided customers who complained with refunds for their Spotify subscriptions.

Consumers should know in advance whether their new product will stop working unless they agree to pay more money for it, the groups say.

“Consumers need a clear standard for what to expect when they buy a connected device. Too often, consumers are left with devices that stop working because companies decide to end support with little or no warning. This leaves people with devices they once relied on without access to features or updates.”

Blocked functions

One way companies can harm consumers with software tethering is by locking features behind a subscription wall after a device is purchased. For example, Happiest Baby restricted consumers from reselling its product.

In July, customers who spent $1,695 on a Snoo crib-and-basket combo from Happiest Baby discovered that some of the features originally advertised for the product would become part of a new $19.99 monthly subscription starting July 15. Customers who already bought the bassinet for those features don’t have to pay the monthly fee, but if they decide to resell or gift their Snoo crib, new buyers won’t have access to those features.

Other times, companies “brick” a connected device, using software to render it inoperable after purchase. This often leaves consumers with devices that no longer work, even if the consumer still wants to use the product, and contributes to the huge amount of electronics accumulating in our nation’s landfills.

“No one wants a drawer full of broken junk — that’s why we continue to fight for our right to fix everything. But too often, gadgets become expensive paperweights not because the hardware breaks, but because companies end software support,” said Liz Chamberlain, director of sustainability at iFixit.

“Consumers have no way to salvage or repurpose their equipment. It’s time for the FTC to step up and protect consumers from these shady, wasteful business practices,” she said.

“Allowing a single company to have complete control over product updates, features, and whether it works at all is causing enormous harm to users, the environment, and the economy,” said Denver Gingerich of the Software Freedom Conservancy. “When we can fix our own devices, communities can provide resources to keep devices running safely for years or decades, from nonprofit projects to independent repair shops to the neighbors across the street. We strongly support these recommendations to the FTC.”