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The Internet of Things (“IoT”) has ushered in a new era of connectivity and convenience, but with it comes many legal issues and new theories of liability. As IoT devices, from smart homes to industrial control systems, become increasingly pervasive in our daily lives, who is responsible when something goes wrong, from the potential for security breaches, privacy violations, and other risks? The question arises whether it should be done. In this blog post, we will highlight some of the emerging legal issues that will become increasingly important in technology-related litigation in the future.
1. Effectiveness of security measures: One of the most pressing concerns surrounding IoT devices is that security measures can be lax. Some IoT devices lack robust security, encryption, and privacy controls, making them vulnerable to cyberattacks and unauthorized access to sensitive personal information. This can pose risks to both consumers and businesses, as attackers can exploit vulnerabilities to hack users or compromise sensitive data. A new theory of responsibility will be tested, based on the theory that organizations have a duty to consider these risks and take steps to reduce them.
2. Cyber vulnerability management for disposable hardware and devices: Another challenge in the IoT world is the prevalence of cheap hardware that is often treated as disposable. Unlike traditional computing devices, which receive regular software updates and security patches, many IoT devices are not designed to be updated or maintained over long periods of time. This lack of ongoing support leaves devices vulnerable to cyber vulnerabilities and makes it difficult for manufacturers to address security issues after the fact. As long as your organization’s IT policies and procedures allow individual employees to use personal hardware for organizational work, or your organization purchases and allocates a variety of inexpensive hardware. Some organizations may need to ensure that sensitive data is managed. Data generated and stored by such disposable hardware is well protected and erased.
3. Numerous points of entry for malicious attackers: IoT devices can serve as potential entry points for malicious attackers to infiltrate other computer networks and systems. Once inside the network, the attacker could exploit her IoT device to launch further attacks or gain unauthorized access to sensitive data. This highlights the importance of securing IoT devices not just for their own sake, but to protect the broader ecosystem of connected devices and systems.
4. Increased monitoring of data and privacy risks: The proliferation of IoT devices has also raised concerns about increased monitoring and surveillance of individuals’ daily activities. From smart home devices that track our movements to wearable fitness trackers that monitor our health data, IoT devices can collect vast amounts of personal information without consumers’ knowledge or consent. This raises concerns about individual privacy, and as long as an organization owns the data, it can also create problems if the organization accesses or relies on that data to make any decisions. For example, consider a device that collects location data and shares that data with devices under the control of your organization’s IT department. For FLSA, location data can be used to show whether someone is or is not working at a particular time. In personal injury cases, location data can be used to show whether an employee was acting within the scope of employment at the time of the incident. In employment discrimination cases, data can be used to demonstrate that information is available to the employer or to prove that information is not available. And in any of these examples, litigants may try to claim that the employer knew or should have known something, especially if the organization has access to such data. It might be used defensively to show that you didn’t actually know something. These are illustrative examples, but they emphasize the importance of data collection, management, and use. The A future problem in some areas.
5. Public safety concerns: Perhaps the most alarming risk associated with IoT devices is the potential risk to public safety. Malfunctions and hacking incidents related to IoT devices can have devastating consequences, such as hackers interfering with self-driving cars and attackers disrupting IoT networks used to operate critical infrastructure. These scenarios have attracted the attention of regulators and require robust security measures and regulatory oversight to ensure the safety and integrity of IoT systems.
6. Algorithmic identification: Finally, there is growing concern about the use of algorithms in IoT systems that can lead to discriminatory decisions. Even unwittingly, companies can introduce algorithms that they later claim can produce biased results that perpetuate inequality and injustice in society. This raises important questions about accountability and transparency in algorithmic decision-making, and the potential legal implications for companies that deploy biased algorithms. For example, last month, Connecticut required developers of high-risk AI systems to “take reasonable care to protect consumers from known or reasonably foreseeable risks of algorithmic discrimination.” submitted a bill. Additionally, the bill prohibits the distribution of certain composite images. Connecticut is one of the latest states to issue a state-legal solution to allegations of algorithmic discrimination, but it is not the only state.
In conclusion, the rise of IoT technologies presents unprecedented opportunities for innovation and connectivity, but also new risks and potential legal challenges that will test a variety of new theories of liability. As the IoT continues to evolve, new laws and regulations will emerge, and courts will test the scope and limits of liability in this new era.
This content was generated in part by and prepared for publication with assistance from ChatGPT.
