What Is Internet of Things (IoT) Law?

Internet of Things (IoT) Law

The Internet of Things (IoT) area of the law relates to internet-connected devices, from smartphones to thermostats, which may collect user data and conduct analytics. In 2015, the Federal Trade Commission (FTC) issued guidelines on best practices and recommendations for companies providing home, wearable, and other personal connected devices. The FTC has recommended industry self-regulation as well as minimal collection and retention of consumer data in relation to IoT devices. The Commission also encourages companies to offer consumers data usage options and data sharing notifications.

IoT Device Law

Privacy and cybersecurity concerns are some of the legal issues relating to IoT technology, especially devices that place large amounts of data on the cloud. The FTC advises businesses to build security into connected products, including proper authentication, pre-tested security measures, and secure default settings. Another legal concern with IoT devices is that IP disputes will arise between companies over standardized technology and data ownership.

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