Eleanor Hecks Last Updated: December 26, 2024
Collected at: https://www.iotforall.com/software-tethering-iot
The modern home is littered with dozens of unusable smart devices. Whether they stop receiving software updates or their functionality gets locked behind a paywall, they effectively become expensive paperweights.
This is the reality of software tethering, a new phenomenon catching like wildfire. Is there anything consumers can do about it?
What Is Software Tethering?
Software tethering is a new term that defines what happens when manufacturers use their product’s software-server connection to enable post-purchase control.
Internet-connected devices stay online and reachable by the server around the clock, allowing businesses to push software or firmware updates anytime.
At face value, software tethering sounds advantageous for consumers. After all, wouldn’t they want a convenient way to receive the latest features and security updates?
The reality is different. Manufacturers increasingly use this connection to make software-reliant technologies less accessible and user-friendly.
In September 2024, several consumer advocacy groups — including Consumer Reports and the United States Public Interest Research Group — wrote an open letter to the U.S. Federal Trade Commission (FTC) to condemn tethered software. They stated the regulatory agency should issue formal or informal guidance on the matter.
Many businesses do not pay much attention to their products’ usability after the sale goes through. One report shows that 50 percent of sellers do not measure the strength of their consumer relationships.
In other words, they do not consider what people think of them after the purchase is finalized. This poses an enormous problem for the life span of support for smart devices.
Why Is Tethered Software Bad?
The Internet of Things (IoT) is a network of physical tools with built-in software and connectivity. Each device must be connected to the internet and reachable by the server, even if it is not exchanging information.
This is the only way it can receive critical security patches, bug fixes, and feature-filled updates.
Sometimes, internet-connected technology becomes entirely useless if it remains offline. This forces consumers to maintain a connection to the manufacturer, changing the nature of product ownership.
Now, the company that sold them the device can remove its features, remotely brick it, charge subscription fees, or prevent reselling.
Currently, there is no law stopping an enterprise from making a smart toothbrush, thermostat, television, coffee maker, or fitness tracker functionally useless.
They could brick it mere months after releasing it. In addition to losing a potentially substantial amount of money, consumers may become vulnerable to cyberattacks when security patches stop.
Electronic waste is also an issue. The United Nations Institute for Training and Research estimates a record-breaking 62 million tonnes was produced in 2022, up 82 percent from 2010. The institute forecasts it will rise another 32 percent by 2030, totaling 72 million tonnes. If manufacturers do not have a strict support timeline they must adhere to, they will contribute to this total.
Examples of Software Tethering
Several high-profile cases of software tethering have made waves in consumer tech spaces.
Happiest Baby Takes Away Features
The Happiest Baby — a consumer electronics startup geared toward parents — locked many of the Snoo Smart Sleeper’s features behind a monthly $19.99 subscription in June 2024.
People were outraged that their $1,695 smart bassinet suddenly lost its advertised features. Harvey Karp, the company’s chief executive officer (CEO), said moving forward with the subscription fee would make the Snoo “even more accessible.”
Spotify Bricks the Car Thing
Spotify released the Car Thing — a Bluetooth-enabled music streaming tool — to the general public in February 2022. In May 2024, it announced it would brick the device by the end of the year.
At first, it did not explicitly offer refunds. While Spotify quietly posted the source code on GitHub — enabling anyone to use, change, or distribute it freely — the device still will not work as intended unless they open up the software that lets it connect to phones.
HP Bans Third-Party Printer Ink
HP’s dynamic security feature stops customers from using ink from other companies, forcing them to buy HP products if they want to use their printer. It started in 2016 with a firmware update.
Overnight, users could no longer use third-party ink cartridges. While a spokesperson says it is to “protect” the quality of the customer experience, critics argue the manufacturer knowingly blocks people from getting better deals.
Peloton Charges a Reactivation Fee
In August 2024, Peloton — the connected fitness equipment company — announced it would charge a one-time equipment activation fee of $95 for used hardware.
Christopher Bruzzo, Peloton’s interim co-CEO, admitted it will be a “source of incremental revenue” for the company. After all, they do not need to pay to produce or ship products that are resold on secondhand marketplaces. The charge will be pure gross profit for them.
Is Anything Being Done to Fix It?
While consumer advocacy groups are pleading with regulatory agencies like the U.S. FTC’s Bureau of Consumer Protection to act, the law is not keeping pace with technological advancement.
That said, the onus is also on private businesses to be transparent. Many do not explicitly state when their smart products will stop receiving support.
Regulatory agencies have shrugged off this issue for years as an unimportant edge case, assuming those buying internet-connected products knew the risks of investing in a relatively unknown technology.
By 2025, experts estimate 152,200 IoT devices will connect to the internet every minute. In other words, it is no longer a fringe issue.
In November 2024 — just months after consumer advocacy groups sent the open letter on software tethering — the U.S. FTC conducted a study on the duration of software support commitments.
It found that 89 percent of manufacturers fail to disclose how long products will receive updates, which may violate the Magnuson Moss Warranty Act.
This report is promising. It shows that a government body is taking software tethering seriously.
However, there is no telling whether it will take further action, especially amidst a change in administration. Even if policymakers do decide to act, it will likely be months — maybe years — before consumers see the fruits of their labor.
Consumers Can Make Their Voices Heard
Manufacturers may claim software tethering increases accessibility or improves the quality of their services, but, more often than not, their actions just so happen to align with their profit generation goals.
Consumers can make their disagreement heard by educating others on the matter and avoiding companies that are not transparent with their support plans.
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