Proposed FTC Law Aims to Protect Consumers from Defective Computer Hardware and Software

Strategic Insights -

The Committee to Fight Microsoft, a public interest group led by Florida lawyer Anthony R. "Andy" Martin, is pushing for a new FTC proposal that would grant the Federal Trade Commission expanded powers to prevent the sale of defective computer hardware and software. The proposed law aims to outlaw the sale of products that do not function as advertised or represented by the manufacturer, and would require manufacturers to offer free upgrades or full refunds for defective merchandise.

Key Takeaways:

  • The proposed law aims to protect consumers from defective computer hardware and software by prohibiting the sale of products that do not function as advertised or represented by the manufacturer.
  • Manufacturers would be required to offer free upgrades or full refunds for defective merchandise, ensuring that consumers do not have to pay additional charges for correcting software errors.
  • The proposed law would create a new FTC Bureau of Computer Competition and Consumer Protection to safeguard consumers in the electronic marketplace.
  • Computers are being treated as "home appliances," and consumers should expect a high standard of reliability from manufacturers, similar to that of television sets or washing machines.
  • The law aims to prevent manufacturers from selling defective products and then charging consumers additional fees for correction disks or software upgrades.
  • Examples of companies that would be impacted by the proposed law include Intel, Microsoft, and Disney, which would be required to replace or refund defective products.

Statistics:

  • The proposed law aims to prevent the sale of millions of defective "Windows 95" computers that may have glitches and defects.
  • Consumers are being "nickel and dimed" by manufacturers for additional software upgrades and correction disks, with Microsoft being a prime example.
  • Computers are being sold with a lower standard of reliability than other home appliances, such as televisions and washing machines.
  • The proposed law would create a new FTC Bureau of Computer Competition and Consumer Protection to oversee the sale of computer hardware and software.