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'Next Technology Frontier'

IoT Privacy, Security Concerns To Be Addressed at House Subcommittee Hearing Tuesday

How Internet of Things device makers are addressing privacy and security issues and the role IoT devices have in “strengthening the U.S. economy and improving the quality of life for consumers” will be the subject of a hearing Tuesday by the House Subcommittee on Commerce, Manufacturing and Trade, said a memo from the committee's majority staff.

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The hearing also will "explore what companies are doing to protect increased consumer information flowing on networks as the IoT gains more exposure, acceptance, and use among consumers,” the memo said. Witnesses include Information Technology and Innovation Foundation Vice President Daniel Castro, Belkin International Chief Technology Officer Brian Van Harlingen and LiveWatch Security CEO Brad Morehead. Intel Vice President-IoT Group Rose Schooler will testify on the emergence of IoT and the opportunities it presents for both the U.S. public and private sectors.

Before the hearing begins, the subcommittee will host an IoT "showcase" featuring Internet-connected products manufactured in members’ districts a subcommittee news release, said. The bipartisan showcase will feature items produced by constituents and companies, ranging from household appliances to automotive technologies, the release said.

Subcommittee Chairman Michael Burgess, R-Texas, called IoT the “next technology frontier.” Ranking Member Jan Schakowsky, D-Ill., also acknowledged the exciting benefits of the technology,” but said she was also “interested in addressing the new and interesting challenges it raises for consumers, workers, and businesses.”

Increased use of connected devices can result in “improved health, safety, and productivity and reduced costs,” but also brings concerns about privacy and security, the memo said. The FTC brought its first enforcement action regarding an IoT device in September 2013 against TRENDnet. The FTC alleged TRENDnet’s Internet-connected home security video camera, SecurView, “failed to use reasonable security to protect consumers’ privacy, even though it claimed in product descriptions that the device was secure,” the memo said. The FTC settled with TRENDnet after the company agreed to establish a comprehensive information security program, notify customers about future security issues with the cameras, provide free technical support for two years, and obtain third-party assessments of its security programs every two years for the next 20 years.

The hearing follows January's release of an FTC report on the IoT (see 1501270034), in which the commission recommended industries develop self-regulatory programs and adopt “privacy- and security-sensitive practices,” the memo said. While the agency said it's too early to have specific IoT legislation to address IoT concerns, the agency staff recommended there be federal data security and privacy legislation. The commission voted 4-1 to issue the IoT report. Republican Commissioner Maureen Ohlhausen issued a concurring statement in which she cited two recommendations she didn't support: baseline privacy legislation and data minimization. Republican Commissioner Joshua Wright voted against the release of the report, saying in his dissenting statement that the FTC’s recommendations were “offered without analytical support showing that they would improve consumer welfare,” the memo said.