US watchdog urges safeguards for 'Internet of Things'
US watchdog urges safeguards for 'Internet of Things'
By Rob Lever January 27, 2015 4:15 PM
Washington (AFP) - A US government consumer watchdog
agency called Tuesday for better privacy and security to be built into the
myriad of connected devices, for fitness, smart homes or other uses.
The "Internet of Things" guidelines released by
the US Federal Trade Commission stop short of a new regulatory effort but
nonetheless provoked critics who said the agency is overstepping its authority.
FTC Chairwoman Edith Ramirez, who announced the
guidelines at a Washington conference, said the move is aimed at promoting
"best practices" for these new devices but also noted that her agency
has authority to crack down on violations of privacy or deceptive consumer
practices.
"Not only is deeply personal information at stake
but as you have more and more devices it means there is more potential for
exposure," Ramirez told the "State of the Net" conference.
"If you want these new technologies to flourish, you
want to make sure consumers understand what is happening, understand what is
being collected, with whom that information is being shared, how this
information is being used."
The FTC last year studied 12 mobile fitness apps and
found they shared data with 76 separate entities.
Ramirez underscored the privacy concerns, saying that
"if I'm wearing a fitness band that tracks how many calories I consume I
wouldn't want to share that data with an insurance company."
The FTC report made no specific legislative
recommendation for the Internet of Things but noted that in its workshops on
the subject "there appeared to be widespread agreement that companies
developing IoT products should implement reasonable security."
The guidelines would apply to the billions of devices
which connect to the Internet including automobiles, refrigerators,
toothbrushes, fitness trackers and other gadgets.
The agency urged companies to "build security into
their devices at the outset, rather than as an afterthought" and to conduct
a privacy or security risk assessment.
But the technology think tank TechFreedom said the
guidelines appeared to be an attempt to regulate the nascent sector.
"At best, this is just another exercise in workshop
theater; at worst, the FTC is trying to regulate the Internet of Things by
stealth," said TechFreedom president Berin Szoka.
Within the agency, FTC Commissioner Joshua Wright issued
a dissenting statement saying that the agency appeared to move away from its
traditional role "not to make broad policy recommendations."
"An economically sound and evidence-based approach
to consumer protection, privacy, and regulation of the Internet of Things would
require the commission to possess and present evidence that its policy
recommendations are more likely to foster competition and innovation than to
stifle it," Wright said.
Gary Shapiro, president of the Consumer Electronics
Association, welcomes the FTC report, saying the agency is taking the right
track in promoting best practices without imposing new rules.
"We commend the FTC for recognizing the enormous
personal, economic and societal benefits that IoT enables, and the agency's
efforts to engage and educate businesses on how to secure the IoT
ecosystem," Shapiro said. "However, it's too early to rush out laws
that may choke off innovation."
Comments
Post a Comment