A patchwork of federal and state regulators is increasingly putting pressure on technology companies and other companies that collect, use and share large consumer data sets, claiming they have sufficient authority to regulate some of the potential privacy and data security risks posed by “big data” and “connected devices.” Their focus is on the estimated six billion devices in use today with embedded sensors and connectivity to the Internet, known as the Internet of Things (IoT). These devices transmit sensitive personal data, often using unencrypted networks, to cloud computing platforms, where the data may be aggregated and sold for commercial purposes.
While the U.S. lacks a comprehensive privacy and data security law to address the risks posed by the IoT and big data, government agencies have started to use regulatory tools to provide guidance and bring enforcement actions in certain circumstances.
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