The Undergraduate Law Review at UC San Diego

Software advances allow for durable goods producers to extract money from consumers after purchase. Traditionally, durable goods are a one-time large purchase. By attempting to expand durable goods transactions into the aftermarket, sellers are making potentially drastic changes to consumer costs for these goods, and expect hefty profits from the move. Sellers create aftermarket transactions in two ways: subscriptions and repairs, and this article argues that these areas should be regulated in new ways given advances in software. First, subscriptions on software-enabled durable goods should be regulated along the lines of the Restore Online Shoppers Confidence Act with special prohibitions for explicit removals of service (instances where companies use software to paywall functionality). Right to repair (RTR) is an issue in the area of durable goods transactions where sellers use software to monopolize their control over aftermarket sales. This article recommends it should be regulated along the proposals of RTR groups, which aim to increase competition between independent repair shops and licensed/seller associated repair. By regulating these areas, the FTC can reduce costs for consumers, both by increasing seller competition and by prohibiting unfair charges.