FTC Staff Report on Internet of Things: Recommends Self-Regulation “Best Practices,” But Leaves Key Issues Unresolved

The Federal Trade Commission released its much anticipated staff report on January 27 regarding consumer privacy and data security concerns arising from the emerging market for connected devices known as the Internet of Things (“IoT”). Titled “The Internet of Things: Privacy and Security in a Connected World,” the FTC’s report (the “Report”) builds on the FTC’s November 2013 IoT Workshop and focuses on issues arising from the estimated 25 billion consumer-facing IoT devices expected to be connected by the end of this year. The Report presents the FTC staff’s recommendations and best practices for enhancing privacy and security in the consumer IoT space, but does not resolve some of the most significant issues presented by this emerging sector, including how to reconcile the growing tension between Fair Information Practice Principles or “FIPPs” — such as notice, choice and data minimization – with technology that often lacks screens for notice and contains sensors designed to collect multiple streams of data at all times.

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