The staff of the Federal Trade Commission recommend a series of concrete steps that businesses can take to enhance and protect consumers’ privacy and security, as Americans start to reap the benefits from a growing world of Internet-connected devices.
The Internet of Things is already impacting the daily lives of millions of Americans through the adoption of health and fitness monitors, home security devices, connected cars and household appliances, among other applications. Such devices offer the potential for improved health-monitoring, safer highways, and more efficient home energy use, among other potential benefits. However, the FTC report also notes that connected devices raise numerous privacy and security concerns that could undermine consumer confidence.
One of the main topics addressed at the workshop was security. The report includes the following recommendations for companies developing Internet of Things devices:
- build security into devices at the outset, rather than as an afterthought in the design process;
- train employees about the importance of security, and ensure that security is managed at an appropriate level in the organization;
- ensure that when outside service providers are hired, that those providers are capable of maintaining reasonable security, and provide reasonable oversight of the providers;
- when a security risk is identified, consider a “defense-in-depth” strategy whereby multiple layers of security may be used to defend against a particular risk;
- consider measures to keep unauthorized users from accessing a consumer’s device, data, or personal information stored on the network;
- monitor connected devices throughout their expected life cycle, and where feasible, provide security patches to cover known risks.
Commission staff also recommend that companies consider limiting the collection of consumer data, and retaining that information only for a set period of time, and not indefinitely. The report notes that data minimization addresses two key privacy risks: first, the risk that a company with a large store of consumer data will become a more enticing target for data thieves or hackers, and second, that consumer data will be used in ways contrary to consumers’ expectations. FTC staff also recommends that companies notify consumers and give them choices about how their information will be used, particularly when the data collection is beyond consumers’ reasonable expectations.