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Financial Services Law Insights and Observations

FTC Seeks Input on Privacy, Security Implications of Connected Consumer Devices

FTC Privacy/Cyber Risk & Data Security

Fintech

On April 17, the FTC requested input on the consumer privacy and security issues posed by the connectivity of consumer devices in advance of a public workshop to be held on November 21, 2013. The request notes that connected devices can communicate with consumers, transmit data back to companies, and compile data for third parties. While advances in connected devices provide consumer benefits, greater connectivity also poses privacy and security risks. The FTC seeks comment on (i) the significant developments in services and products that make use of this connectivity, (ii) the technologies that enable this connectivity (e.g., RFID, barcodes, wired and wireless connections), (iii) the current and future uses of smart technology, (iv) consumer benefits, (v) privacy and security concerns, and (vi) how privacy risks should be weighed against potential societal benefits. The FTC is accepting comments through June 1, 2013.