FTC Issues Report And Privacy Best Practices For The Internet of Things

On January 27, 2015 the Federal Trade Commission (the "FTC") issued a report detailing best practices and recommendations that businesses engaged in the Internet of Things ("IoT") can follow to protect consumer privacy and security. The IoT refers to the connection of everyday objects to the Internet and the transmission of data between those devices. According to Gartner estimates the IoT services spending will reach $69.5 billion in 2015. The potential benefits of IoT growth include enhanced healthcare through connected medical devices, convenience and cost savings through home automation and improved safety and convenience through connected cars.

In the report the FTC expresses concern about both security and privacy risks associated with the IoT. It identified three primary security risks: (i) the increased number of Internet connected devices increases the number of network vulnerabilities and creates greater possibility of unauthorized access and misuse of