From: Politico
By ERIN MERSHON
As an array of everyday objects such as thermostats, toasters and even sneakers gets connected to the Internet, the FTC is taking a first stab at examining this vast and emerging area of technology, sparking concern from trade groups that fear regulation could harm innovation.
The Federal Trade Commission is due to hold a workshop on the so-called Internet of Things next week as it begins to sort out how existing privacy and security laws apply to next-generation devices that collect streams of data on users. The daylong event is widely seen as the agency’s effort to establish a foothold in this largely unregulated piece of the Internet economy that is transforming a wide variety of industries.
“Technology is just developing at a pace that we can barely keep up with,” FTC Chairwoman Edith Ramirez said in her first appearance as head of the agency in April. “We need to be conscious of this, and it absolutely needs further study, and I certainly want to make sure the agency is looking at all these developments.”
But industry groups, like the Consumer Electronics Association, the Direct Marketing Association and the Software & Information Industry Association, are already lining up to warn the agency against taking any action that could stifle technology advances that serve consumers.
“It’s incredibly important that we keep the space open for innovation as it grows so we can understand the value folks are deriving from it and not have regulation get in the way,” said Rachel Thomas, DMA vice president of government affairs.
Offering guidance on such a broad and nascent topic “isn’t practical,” said David LeDuc, senior public policy director at SIIA. “We just want to make sure they’re not trying to regulate on a snapshot of current technology.”
The FTC made a foray into the Internet of Things in September, settling a case against TRENDnet, a maker of Internet-connected home security cameras. The company’s “lax security practices” resulted in hackers posting video feeds from people’s homes, including images of babies in their cribs, the FTC said. The settlement requires the company to establish a security-risk program and obtain third-party security assessments every two years for the next 20 years.
The world of Internet-connected appliances is rapidly expanding and today encompasses everything from smart scales that help consumers track weight loss to connected refrigerators that tell owners when their milk is about to expire. There are even forks that can track how quickly you eat and how long you spend chewing between bites.
Other members of FTC appear to support the effort to tackle privacy and security standards in the emerging category. Commissioners Julie Brill and Maureen Ohlhausen have addressed the topic in remarks this year. Brill said in a recent interview she’s hopeful the FTC will be able to agree on a set of best practices following the workshop.
Leave a Reply