This is mostly about contract law. You buy a device that works as long as you follow its rules. Later, some exec decides to rip consumers off by changing its terms of the contract. That, in turn breaks the device. Or, Amazon believes you said a racial slur into Alexa and shuts down your account.
More regulations can only make this worse. Rather, what will happen is people will move away from smart features and buy devices that work as aplliances without an internet connection. This is what I do. I don't plug my TV into WiFi, I don't own Alexa or Ring. I own security cameras, but I don't subscribe to any subscription service. I treat devices as appliance. Actually, I treat all my PCs as appiances too. I never upgrade them, I don't update the OS. I use the functionality I paid for. When I need more functionality, I either buy an app (if it will run on my un-updated PC) or I buy new hardware and software. This avoids the unpleasentness of discovering upgrade issues.
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