Liz Coll, Digital Policy Expert, introduces and outlines consumer
concerns around the Internet of Things in light of Consumers International's latest report.
Nest’s announcement last month that it would no longer support Revolv’s smart home controller
may not have topped many consumer’s concerns, but it clearly demonstrates the
kinds of detriment that look set to arise from the Internet of Things.
Revolv (acquired by Google’s Nest in 2014) let people connect and control all of the smart
switches, security devices, sensors, and heating in their home. This week it will be switched off, so the hardware will no longer function. The Revolv customer (and ‘lifetime’ subscription holder) who first
drew attention to this in a blog, sums up the impact of its closure on him:
“My house will stop working. My
landscape lighting will stop turning on and off, my security lights will stop
reacting to motion, and my home made vacation burglar deterrent will stop
working. This is a conscious intentional decision by Google/Nest.”
Consumers who bought the
product with a lifetime subscription were left wondering whether they would have
any rights to refunds, or replacements or what would
happen with its data? Since the user outcry, there been a change of heart, and
now refunds will be issued for the hub purchase price.
But is pulling the plug on owned
devices a one off, an inconvenient by-product
of fast moving technology, or could this be a worrying indication of a
potential future for the Internet of Things? We may see a future where device
functionality is more and more dependent on remote decisions with little input
from owners, and where large companies definition of a product ‘lifetime’
prevails.
The future’s here
With estimates that, already, 25 billion devices are
connected to the Internet of Things – a figure that’s set to double by 2020 - connected devices now outnumber people by nearly 4 to 1.
No longer a futuristic concept, the Internet
of Things is becoming embedded in everyday life - along with some patterns that
may cause alarm for consumers. It’s not just about devices and appliances at
the luxury end of the market (such as talking fridges), Consumer International’s (CI) latest research
with Members in Kenya, the Philippines and Nigeria discovered that smart
systems and products are connecting and collecting data on users and services
across all walks of life, including healthcare and public transportation.
Of course, consumers could stand to benefit in many ways, as
more devices across more sectors share usage information and learning. Think of
the convenience of a smart car whose tyre sensors detect the precise time at which
you need a replacement; the peace of mind of a smart home security system, or
items tagged with location sensors; the ease of using a connected
transit system across a busy city; or an energy home system that learns and
adjusts to your preferences and habits.
The erosion of
ownership
So far the capacity of these devices to collect detailed,
time sensitive and often personal data and share it with other devices or remote
hubs has been the subject of much attention and discussion about privacy. Security is also a huge concern, with much larger surface area meaning increased
vulnerability.
But the implications go
much further than this and could, as in the case of Revolv’s smart home kit,
suggest a world where the normal expectations of what we can do, and for how
long, with things we have purchased are turned on their head.
Our new report calls this the ‘erosion of ownership’ which could come about as
tangible objects take on digital properties by way of the software embedded
into them. We expect to see more hybrid products emerging where the part of the
product containing software is licenced via contract while the device itself is
owned. In such cases, will operation of the device be subject to contract terms
which can put unexpected limitations on how the product is used - or in
Revolv’s case, if it can actually be used at all? There are even fears that we
may start to see the type of remote automated contract enforcement recognisable
from digital rights management, where technical blocks are put on to limit
particular uses and prevent unauthorised use, repair or plug-ins.
Upholding
rights for the future
How easy will it be for consumers to
understand or uphold their rights, or attempt to uphold them given such complex
lines of responsibility? Or where there is confusion over exactly
what a consumer can or can’t do with a product they have purchased?
We know laws find it hard to keep up with technological
developments, and that as products and companies cut across not only sectors
but national jurisdictions, that regulation and enforcement of consumer rights
is challenging. Additionally, we cannot rely on competition to provide for
checks and balances as a small number of companies dominate, and
provider lock- in is already evident in the infancy of the Internet of Things.
To make sure that we really can be left to our own devices
if we prefer, consumer protection and concepts of proportionality, fair use and
fair processes, must be put at the centre of discussions on the Internet of Things
development and delivery.
What’s more, to move beyond protection and into a
scenario where consumers can gain insight and convenience from connected
devices on their own terms, services and products should be designed with
consumer trust and controls built in, with easy ways to hold companies who
overstep the mark to account.
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