As we have often discussed, the Internet of Things (“IoT”) has become the next iteration of the Internet.  IoT refers to the connection of everyday devices to the Internet.  This connectivity allows previously “dumb” devices to transmit and receive data via the Internet in order to transform these run-of-the-mill devices into “smart” devices.  By 2020, experts estimate that IoT has the potential to generate more than $300 billion dollars in revenue. But as the reality of IoT looms ever closer, many experts in the field have begun to question whether IoT’s prevalence in our daily lives will raise ethical and moral implications.  For instance, on a fundamental level, does IoT need an ethical framework or standard that regulates its use?  Because there are so many contributors and end-users of IoT products, there is a shared responsibility among producers, manufacturers, governmental agencies, and consumers alike.

Despite IoT having such a prevalent effect on a wide variety of parties, experts cite a worrying lack of framework and infrastructure capable of monitoring or addressing any issues that may arise.  For example, while there is considerable governmental oversight and regulation of medicine distribution (e.g., over-the-counter, by prescription only, hospital-use only), the government has yet to create similar agencies to monitor IoT.

While there are third-party organizations such as the National Institute of Standards and Technology that have begun to suggest and develop guidelines to protect consumer privacy, the government has yet to provide any true guidance on the topic.  As a result, experts have begun to call for the government to, at the very least, set standard definitions for important terms of art such as “personal information,” “private personal information,” or “consumer privacy.”

If the government were to give finite answers as to what the aforementioned terms mean, not only would it be easier for legislators to recommend legislation that uses these uniform terms, but companies and consumers alike would finally understand what type of information they can expect to remain private as opposed to what type of personal information may not be considered “personal” nor “private.”

Lastly, experts suggest that the government push for greater transparency in how companies handle the personal information of consumers.  As there are no current requirements for disclosure by companies regarding what type of personal information they may be collecting or selling, consumers remain at a great disadvantage because the protection of personal data varies from provider to provider.  Moreover, as newer generations of consumers become savvier in terms of adapting to new technology, some experts fear that older generations of consumers may improperly expect different safeguards in terms of what personal information should be protected.  As such, the government must carefully balance the expectations and needs of all consumers as we head into an IoT-dominated world.

In conclusion, without governmental inquiry and research into this field, problems that may accompany IoT’s launch may be largely overlooked until it is too late to rectify any oversight or unintended disclosure of consumers’ personal information.

For more information on this topic, please visit our Internet Business & eCommerce service page, which is part of our Internet & eCommerce Practice.

Klemchuk LLP is an Intellectual Property (IP), Technology, Internet, and Business law firm located in Dallas, TX.  The firm offers comprehensive legal services including litigation and enforcement of all forms of IP as well as registration and licensing of patents, trademarks, trade dress, and copyrights.  The firm also provides a wide range of technology, Internet, e-commerce, and business services including business planning, formation, and financing, mergers and acquisitions, business litigation, data privacy, and domain name dispute resolution.  Additional information about the Internet & eCommerce law firm and its Internet & eCommerce attorneys may be found at www.klemchuk.com.

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