Ethics and Privacy II: The Internet of Things (IoT)

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Abstract

The Internet of Things (IoT) and the Internet of Everywhere (IoE) have the potential of becoming a major part of individual lives by the connection of devices to the Internet. Cars, kitchen appliances; heart monitors, and other devices are physical devices capable of gathering and sharing electronic information. With these “smart” devices, comes the specter of privacy invasion. Most persons with smart phones have experienced the scenario of being asked their opinion of a particular restaurant or other establishments from which they just emanated. These issues have caused government agencies to exert jurisdiction over the devices to assure against misuse. Thus, the Federal Trade Commission and other U.S. federal agencies have made extensive investigations and have reported their findings with suggestions to protect the public from wrongdoers. Included in the discussion are a number of law cases whereby government agencies have sought to regulate and penalize companies which have abused privileges concerning IoT.

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Notes

  1. 1.

    Kevin Ashton, Beginning the Internet of Things, MEDIUM.COM (March 18, 2016), https://medium.com/@kevin_ashton/beginning-the-internet-of-things-6d5ab6178801.

  2. 2.

    Andrew Meola, What is the Internet of Things (IoT): Meaning & Definition?, BUSINESS INSIDER (May 10, 2018), https://www.businessinsider.com/internet-of-things-definition.

  3. 3.

    Will Kenton, The Internet of Things, INVESTOPEDIA (Dec. 18, 2018), https://www.investopedia.com/terms/i/internet-things.asp.

  4. 4.

    What is the Internet of Things?, GOLDMAN SACHS (Sept. 4, 2014), https://www.goldmansachs.com/insights/pages/iot-infographic.html.

  5. 5.

    Internet of Everything (IoE), IoT AGENDA, https://internetofthingsagenda.techtarget.com/definition/Internet-of-Everything-IoE.

  6. 6.

    Everything is Connected, CISCO, https://www.cisco.com/c/r/en/us/internet-of-everything-ioe/sea-change/index.html.

  7. 7.

    Luke Simmons, What is the difference between the Internet of Everything and the Internet of Things?, BLOG, CLOUDRAIL (Oct. 14, 2015), https://blog.cloudrail.com/internet-of-everything-vs-internet-of-things/.

  8. 8.

    Gilad Rosner and Erin Kenneally, Privacy and the Internet of Things, CENTER FOR LONG-TERM CYBERSECURITY WHITE PAPER (June, 2018), https://cltc.berkeley.edu/wp-content/uploads/2018/06/CLTC_Privacy_of_the_IoT-1.pdf.

  9. 9.

    Knud Lasse Lueth, State of the IoT 2018: Number of IoT devices now at 7B Market accelerating, IOT ANALYTICS (Aug 8 2018), https://iot-analytics.com/state-of-the-iot-update-q1-q2-2018-number-of-iot-devices-now-7b/.

  10. 10.

    Internet of Things (IoT), ELECTRONIC PRIVACY INFORMATION CENTER, https://www.epic.org/privacy/internet/iot/.

  11. 11.

    Federal Trade Commission Act, 15 U.S.C. §§ 41–58, as amended.

  12. 12.

    internet of things, FEDERAL TRADE COMMISSION, STAFF REPORT (Jan. 2015), https://www.ftc.gov/system/files/documents/reports/federal-trade-commission-staff-report-november-2013-workshop-entitled-internet-things-privacy/150127iotrpt.pdf.

  13. 13.

    Id. at 14–16.

  14. 14.

    Id. at iii–ix.

  15. 15.

    15 U.S.C. §1681.

  16. 16.

    FTC Report supra, note 416 at vii.

  17. 17.

    FTC v. D-Link Systems, Inc., No. 3:2017cv00039 (N.D. Ca. Jan. 5, 2017).

  18. 18.

    FTC Charges D-Link Put Consumers’ Privacy at Risk Due to the Inadequate Security of Its Computer Routers and Cameras, FEDERAL TRADE COMMISSION (Jan. 5, 2017), https://www.ftc.gov/news-events/press-releases/2017/01/ftc-charges-d-link-put-consumers-privacy-risk-due-inadequate.

  19. 19.

    FTC v. VIZIO, Inc. No. 2:17-cv-00758 (D.N.J. Feb. 6, 2017) https://www.ftc.gov/system/files/documents/cases/170206_vizio_2017.02.06_complaint.pdf.

  20. 20.

    Hayley Tsukayama, Vizio agrees to pay $2.2 million to settle FTC’s television-spying case, WASHINGTON POST Feb. 6, 2017), https://www.washingtonpost.com/business/economy/vizio-agrees-to-pay-22-million-to-settles-ftcs-television-spying-case/2017/02/06/3d4d4b16-ec8f-11e6-9662-6eedf1627882_story.html?utm_term=.14dbb83db2b9.

  21. 21.

    Hillary Brill and Scott Jones, Little Things and Big Challenges: Information Privacy and the Internet of Things, 66 A. U. L. Rev. 1183 (2017), https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3188958. The said article is an excellent review of privacy and IoT which this author used in part for sources and opinions.

  22. 22.

    In re Nomi Technologies, Inc., FTC Admin. Proceeding No. C-4538 (2015), https://www.ftc.gov/system/files/documents/cases/150902nomitechcmpt.pdf.

  23. 23.

    Brill, supra at note 425, p. 1217.

  24. 24.

    USA v. InModi Pte Ltd., No. 3:16-cv-3474 (N.D. Ca. June 22, 2016), https://www.ftc.gov/system/files/documents/cases/160622inmobicmpt.pdf.

  25. 25.

    Mobile Advertising Network InMobi Settles FTC Charges It Tracked Hundreds of Millions of Consumers’ Locations Without Permission, FEDERAL TRADE COMMISSION (June 22, 2016), https://www.ftc.gov/news-events/press-releases/2016/06/mobile-advertising-network-inmobi-settles-ftc-charges-it-tracked.

  26. 26.

    Brill, supra, at note 425 at 1219.

  27. 27.

    In re Turn, No. C-4612, April 6, 2016, https://www.ftc.gov/system/files/documents/cases/152_3099_c4612_turn_complaint.pdf.

  28. 28.

    FTC Approves Final Consent Order with Online Company Charged with Deceptively Tracking Consumers Online and Through Mobile Devices, FEDERAL TRADE COMMISSION (Dec. 20, 2016), https://www.ftc.gov/news-events/press-releases/2016/12/digital-advertising-company-settles-ftc-charges-it-deceptively.

  29. 29.

    Internet of Things (IoT) Cybersecurity Improvement Act of 2017, S. 1691, 115th Cong. (2017).

  30. 30.

    S. (unassigned), 116th Cong. (2019), H.R. 1668, 116th Cong., To leverage Federal Government procurement power to encourage increased cybersecurity for Internet of Things devices, https://www.govtrack.us/congress/bills/116/hr1668.

  31. 31.

    Alfred Ng, Congress introduces bill to improve ‘internet of things’ security, CNET (March 11, 2019), https://www.cnet.com/news/congress-introduces-bill-to-improve-internet-of-things-security/.

  32. 32.

    The text is from a speech by the acting director and acting chief economist for the SEC Division of Economic and Risk Analysis, Scott W. Bauguess, The Role of Big Data, Machine Learning, and AI in Assessing Risks: A Regulatory Perspective, OPRISK NORTH AMERICA (June 21, 2017), https://www.sec.gov/news/speech/bauguess-big-data-ai#_edn2.

  33. 33.

    Id.

  34. 34.

    15 U.S.C.§ 80b-1 through 15 U.S.C.§ 80b-21.

  35. 35.

    IM Guidance Update, SECURITIES AND EXCHANGE COMMISSION, No. 2017-02 (Feb. 2017), https://www.sec.gov/investment/im-guidance-2017-02.pdf.

  36. 36.

    Investment Advisers Act of 1940 as amended, 15 U.S.C.§ 80b-1 through 15 U.S.C.§ 80b-21.

  37. 37.

    Id. at 2.

  38. 38.

    Id. at 3–4.

  39. 39.

    Id. at 4.

  40. 40.

    Id. at 6–7.

  41. 41.

    Id. at 7–8.

  42. 42.

    SEC v. Wealthfront Advisers LLC, Ad. Proceeding Order No. 3-18949, Dec. 21, 2018, https://www.sec.gov/litigation/admin/2018/ia-5086.pdf.

  43. 43.

    A summary of the Order is at: SEC Charges Two Robo-Advisers With False Disclosures, SECURITIES AND EXCHANGE COMMISSION RELEASE NO. 2018-300 (Dec. 21, 2018), https://www.sec.gov/news/press-release/2018-300.

  44. 44.

    Id. A copy of the Order is at: SEC v. Hedgeable, Inc., SEC Admin. Proceeding No. 3-18950 (Dec. 21, 2018), https://www.sec.gov/litigation/admin/2018/ia-5087.pdf.

  45. 45.

    FCC Regulations and Guidelines for Manufacturing IoT Devices, TEMPO BLOG (Sept. 20, 2018), https://www.tempoautomation.com/blog/fcc-regulations-and-guidelines-for-manufacturing-iot-devices/.

  46. 46.

    Kim Zetter, Hospital viruses: Fake cancerous nodes in CT scans, created by malware, trick radiologists, WASHINGTON POST (April 3, 2019), https://www.washingtonpost.com/technology/2019/04/03/hospital-viruses-fake-cancerous-nodes-ct-scans-created-by-malware-trick-radiologists/?utm_term=.b771a767367a.

  47. 47.

    Cybersecurity, U.S. FOOD AND DRUG ADMINISTRATION, https://www.fda.gov/MedicalDevices/DigitalHealth/ucm373213.htm#guidance.

  48. 48.

    Fisher, supra at note 414 at p. 9.

  49. 49.

    Strategic Principles for Securing the Internet of Things (IoT), U.S. DEPT. of HOMELAND SECURITY (Nov. 15, 2016), https://www.dhs.gov/sites/default/files/publications/Strategic_Principles_for_Securing_the_Internet_of_Things-2016-1115-FINAL....pdf.

  50. 50.

    Carlos Monje, Jr. How the Internet of Things (IoT) Can Bring U.S. Transportation and Infrastructure into the 21st Century, Statement before U.S. Senate Comm. On Commerce, Science and Transportation, June 28, 2016, https://www.transportation.gov/government-affairs/testimony/dot-how-internet-things-iot-can-bring-us-transportation-and.

  51. 51.

    National Science Foundation funds research and development of an IoT platform for smart schools, ENGINEERING COMPUTATION LABORATORY (May 18, 2017), http://molecularworkbench.blogspot.com/2017/05/national-science-foundation-funds.html.

  52. 52.

    DoD Policy Recommendations for The Internet of Things (IoT), U.S. DEPT. OF DEFENSE (Dec. 16, 2016) https://dodcio.defense.gov/Portals/0/Documents/Announcement/DoD%20Policy%20Recommendations%20for%20Internet%20of%20Things%20-%20White%20Paper.pdf?ver=2017-01-26-152811-440.

  53. 53.

    A BotNet is a collection of internet-connected devices, e.g., mobile devices, servers, and personal computers that are infected and controlled by a type of malware such as denial-of-service attack, spam, and other harmful malware. Botnet, SEARCHSECURITY, https://searchsecurity.techtarget.com/definition/botnet.

  54. 54.

    Id. at 3–4.

  55. 55.

    Fostering The Advancement of Internet of the Things, U.S. Department of Commerce (Jan. 2017), https://www.ntia.doc.gov/files/ntia/publications/iot_green_paper_01122017.pdf.

  56. 56.

    Quoted from Id. at 2–3.

  57. 57.

    Jeffrey Voas, Richard Kuhn, Phillip Laplante, and Sophia Applebaum, Internet of Things (IoT) Trust Concerns, NIST WH ITE PAPER (Oct. 17, 2018), https://csrc.nist.gov/publications/detail/white-paper/2018/10/17/iot-trust-concerns/draft. The full draft of the paper can be found at https://nvlpubs.nist.gov/nistpubs/ir/2018/NIST.IR.8228-draft.pdf.

  58. 58.

    Quoted from Id. at v–vi.

  59. 59.

    Samantha Ehlinger, State Department invests in IoT, FEDSCOOP (June 23, 2016), https://www.fedscoop.com/state-department-invests-in-iot/.

  60. 60.

    Pablo Valerio, US Department of Energy claims IoT Breakthrough with Waggle concept, IoT TIMES (Jan. 26, 2018), https://iot.eetimes.com/us-department-of-energy-claims-iot-breakthrough-with-waggle-concept/.

  61. 61.

    The Internet of Things in Commercial Aviation, WIND, https://www.windriver.com/whitepapers/iot-commercial-aviation/1513-IoT-in-Commercial-Aviation-White-Paper.pdf.

  62. 62.

    Internet of Things, Nat. Telecommunications and Information Adm., https://www.ntia.doc.gov/category/internet-things.

  63. 63.

    California Consumer Privacy Act of 2018, AB375, Title 1.81.5, https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB1121.

  64. 64.

    Kristen J. Mathews and Courtney M. Bowman, The California Consumer Privacy Act of 2018, PROSKAUER, PRIVACY LAW BLOG (July 13, 2018), https://privacylaw.proskauer.com/2018/07/articles/data-privacy-laws/the-california-consumer-privacy-act-of-2018/.

  65. 65.

    Stuart D. Levi, California Privacy Law: What Companies Should Do to Prepare in 2019, SKADDEN (Jan. 17, 2019), https://www.skadden.com/insights/publications/2019/01/2019-insights/california-privacy-law.

  66. 66.

    For a discussion, see Vermont Enacts Nation’s First Data Broker Legislation, HUNTON ANDREWS KURTH (June 13, 2018), https://www.huntonprivacyblog.com/2018/06/13/vermont-enacts-nations-first-data-broker-legislation/.

  67. 67.

    Vermont Statutes, Act 171 (2018), H. 764, eff.

  68. 68.

    Far an excellent summary from which this discussion emanates in part is Cameron F. Kerry, Breaking down proposals for privacy legislation: How do they regulate?, BROOKINGS (March 8, 2019), https://www.brookings/research/breaking-down-proposals-for-privacy-legislation-how-do-they-regulate/.

  69. 69.

    Dara Care Act of 2018, S. 3744, 115th Cong. (2019).

  70. 70.

    Id., https://www.govinfo.gov/content/pkg/BILLS-115s3744is/pdf/BILLS-115s3744is.pdf.

  71. 71.

    The Consumer Data Protection Act of 2018, Discussion Draft of Sen. Wyden, https://www.wyden.senate.gov/imo/media/doc/Wyden%20Privacy%20Bill%20one%20pager%20Nov%201.pdf.

  72. 72.

    CDT Federal Baseline Privacy Legislation Discussion Draft, CENTER FOR DEMOCRACY & TECHNOLOGY (Dec. 5, 2018), https://cdt.org/files/2018/12/2018-12-12-CDT-Privacy-Discussion-Draft-Final.pdf.

  73. 73.

    Innovative and Ethical Data Use Act of 2018, INTEL CORP., https://usprivacybill.intel.com/legislation.

  74. 74.

    Cameron F. Kerry, supra note 473 at 6.

  75. 75.

    The Internet of Things, EUROPEAN COMMISSION DIGITAL SINGLE MARKET, https://ec.europa.eu/digital-single-market/en/policies/internet-things.

  76. 76.

    Definition of a Research and Innovation Policy Leveraging Cloud Computing and IoT Combination, European Commission (SMART 2013/0037 (2014)), file:///C:/Users/Giras/Downloads/DefinitionofaResearchandInnovationPolicyLeveragingCloudComputingandIoTCombination.pdf.

  77. 77.

    Id.

  78. 78.

    European General Data Protection Regulation (GDPR), (EU) 2016/679. Text of GDPR may be found at https://gdpr-info.eu/.

  79. 79.

    GDPR Key Changes, EU GDPR.ORG, https://eugdpr.org/the-regulation/.

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Girasa, R. (2020). Ethics and Privacy II: The Internet of Things (IoT). In: Artificial Intelligence as a Disruptive Technology. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-35975-1_5

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