IoT Raises New Legal Challenges For Business

Privacy, security, and data ownership issues surrounding Internet of Things devices are creating a host of new legal questions and problems. Here’s what’s happening now, and what you need to know.

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For example, VTech is being sued in Illinois for fraud and deceptive business practices, breach of contract, breach of good faith and fair dealing, breach of implied warranty, and negligence. Its product was allegedly vulnerable to a SQL injection attack that allowed hackers to steal the personal information of 2.8 million parents and children.

New classes of devices, including wearables and drones, are collecting information that may not have been available previously, or may not have been cost-effective to procure, particularly in a persistent way, in the past.  “Consumers are going to be providing information to products in a new way that companies have not thought of. Those companies may not have thought about privacy the same way an Internet-facing line of business in the same organization would,” said Nicholas Merker, co-chair of the data security and privacy practice at law firm Ice Miller, in an interview. “If you’ve never captured information in your product and you want to start now, you’re going to have some of the problems folks had in the Internet era when they started doing the same thing.”

See on Scoop.itInternet of Things – Technology focus

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