FTC Releases Report on the "Internet of Things"

FTC FCRA Privacy/Cyber Risk & Data Security

On January 28, the FTC released a comprehensive report detailing what the so-called “Internet of Things” is, how it is being used, and how both consumers and businesses can protect themselves.  The report defines the Internet of Things as “devices or sensors – other than computers, smartphones, or tablets – that connect, store or transmit information with or between each other via the Internet,” and that are sold to or used by consumers.  The report focuses on consumer privacy and security and offers a variety of recommendations for those companies offering devices that fall within the definition, including that security be a key part of the design process and data collection be limited where possible.  The report does not call for new legislation specific to the Internet of Things because the FTC believes such legislation would be premature.  The FTC states that it will use existing authority under laws such as the FTC Act, the Fair Credit Reporting Act, the Hi-Tech Act, and the Children’s Online Privacy Protection Act to take actions against Internet of Things products and services as necessary to protect consumers.