At least 40% of Australian households now have at least one home “Internet of Things” device. These are fridges, window blinds, locks and other devices that are connected to the Internet.
While the Internet of Things (IoT) may lead to more efficiency in our daily lives, my research shows that consumers are exposed to many risks by the use of IoT devices, ranging from disclosure of private information, to physical injury and problems with the devices themselves.
Australia has no specific laws aimed at addressing IoT issues, and current laws intended to protect consumers have gaps and uncertainties when dealing with IoT devices. Many IoT device manufacturers and suppliers show little regard for customers' privacy. Some even make money from customer data.
Consumer electronics company Vizio recently agreed to pay US regulators US $ 2.2 million, after failing to get appropriate permission from users to track their TV viewing habits.
Late last year, the Norwegian Consumer Council found that a children's doll recorded anything said to it by children and sent the recordings to a US company. The company reserved the right to share and use the data for a broad range of purposes.
IoT devices have the potential to collect more private data about individuals than was possible with previous devices. All this data can then be used to study consumers, predict our behavior, and sell us products at times when our willpower is lowest. Some companies are currently using technology to track consumers through stores and send their messages to mobile phones. This may be linked to our purchase history.
Consumers are exposed to significant risks from IoT devices, from the use of data, to security flaws and devices no longer being supported. They should think long and hard about the risks they are taking on with IoT devices. Do you really need that internet-connected hairbrush?
