Antitrust Law Daily Wrap Up, PRIVACY NEWS: FTC Commissioner Brill addresses pitfalls of the "internet of things", (Mar 17, 2014)

By Edward L. Puzzo, J.D.

In a recent address at Fordham University School of Law, FTC Commissioner Julie Brill discussed the privacy implications of the increasingly internet-connected devices we use daily, and suggested certain remedies to return control of this information to consumers.

Brill noted that we are entering a world where multiple things, such as cars, clothing, thermostats, and appliances, as well as smartphones, will be connected to the internet: an "internet of things". While this will offer many new conveniences to us, it also means that connected devices will offer a detailed view into where we are, what is happening in our homes, and what our children are doing. The multitude of devices will generate accurate, sensitive, deeply personal and abundant data which, if combined with other online and offline data, may be used to create "alarmingly personal consumer profiles", according to Brill. Those profiles may be used to accurately predict a consumer's sexual orientation, health conditions, financial condition, religion and race, all outside a legal regime that would provide notice and an opportunity to challenge the accuracy of the data. If the data is inaccurate, or falls into the wrong hands, we will pay a price in lost autonomy in a society in which information about some of the most sensitive aspects of our lives is available for analysts to examine without our knowledge or consent, and for anyone to buy if they are willing to pay the going price, Brill stated.

To address these privacy concerns, Brill recommends that companies be encouraged to de-identify the data they collect whenever feasible. The FTC has developed best practices around de-identification that strike an appropriate balance and include both robust de-identification technologies and social agreements to not re-associate de-identified data with particular individuals.

Brill reiterated her push for a "Reclaim Your Name" initiative, intended to be an online resource to give consumers more control over data collected about them. The initiative would allow consumer to find out how data brokers are collecting and using their data; give them access to information that data brokers have amassed about them; allow them to opt-out if they learn a data broker is selling their information for marketing purposes; and provide them the opportunity to correct errors in information used for substantive decisions. Data brokers that participated in Reclaim Your Name would agree to tailor their data handling and notice and choice tools to the sensitivity of the information at issue. As the data they handle or create becomes more sensitive—relating to health conditions, sexual orientation, and financial condition, for example—data brokers would provide greater transparency and more robust notice and choice to consumers.

The address, entitled "The Internet of Things: Building Trust and Maximizing Benefits

Through Consumer Control" was presented to the Fordham University School of Law in New York on March 14.

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