Consumer Advocates Urge Federal Trade Commission to Create Clear Guidance on Software Tethering

The Consumer Federation of America joined numerous other advocates in urging the Federal Trade Commission (FTC) to create clear guidance to address the issue of software tethering which leads to several consumer harms, including locking features behind a subscription after the purchase of a device, and companies selling connected devices only to render them nonfunctional later using software.

Both of these unfair and deceptive practices are examples of how companies are using software tethers in their devices to infringe on a consumer's right to own the products they buy. The FTC has a number of tools at its disposal to help establish standards for IoT device support. While a formal rulemaking is one possibility, the FTC also has the ability to issue more informal guidance, such as its Endorsement Guides and Dot Com Disclosures.