The Internet of You: The Ethical, Privacy, and Legal Implications of Connected Devices. Beverly Kracher, Ph.D. Business Ethics Alliance

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1 The Internet of You: The Ethical, Privacy, and Legal Implications of Connected Devices Beverly Kracher, Ph.D. Business Ethics Alliance Creighton University Omaha, Nebraska

2 Beverly Kracher, Ph.D., is the Robert B. Daugherty Endowed Chair in Business Ethics & Society at Creighton University in Omaha, Nebraska. She is also the Executive Director and CEO of the Business Ethics Alliance, whose purpose is to promote an environment in Omaha where the discussion and practice of business ethics is encouraged and expected. She is widely published in the field of business ethics and is a frequent presenter and speaker in the field. She serves as an advisory board member of the Cary M. Maguire Center for Ethics in Financial Services at The American College and was named one of the Top 100 Thought Leaders by Trust Across America. In 2013, she was chosen the Omaha Business Woman of the Year.

3 The Internet of You: The Ethical, Privacy, and Legal Implications of Connected Devices Table of Contents I. What Is the Internet of Things...5 II. Trends...5 III. Benefits and Risks...6 IV. Recommendations for Minimizing Privacy and Informed Consent Risks of the IoT...6 V. Conclusion...7 VI. References...7 The Internet of You: The Ethical, Privacy, and Legal Implications... Kracher 3

5 The Internet of You: The Ethical, Privacy, and Legal Implications of Connected Devices The Internet of Things is probably the most disruptive technological change in our lifetimes. It is a huge, fundamental shift that has the potential to drive better life experiences as well as an extreme loss of privacy and ethical and legal rights. In this paper, I describe the Internet of Things. I highlight trends, discuss benefits and risks, and make high-level recommendations for minimizing privacy and informed consent risks so that we can be better prepared for the technologically laced world that lies ahead. I. What Is the Internet of Things Physical objects, sensors, cloud-based apps, machines, the Internet, and you. These are the building blocks of the Internet of Things (IoT), perhaps the most disruptive technological change our in lifetimes. While the popular press and everyday conversations are filled with reference to the IoT, most of us do not really understand what it is and how the IoT is poised to change the basic ways we live, work, and play. In the widest technological sense, the IoT will be a global network infrastructure that connects physical and virtual things to each other through wireless connections and communications (Van Den Hoven, J., 2014). In common speak, this means that we will be able to uniquely identify any object and have it transmit and accept communication from any other object we choose. Humans can make use of this communication in remarkable ways. One good example of the IoT is by Daniel Burrus (2014.) He imagines a situation where cement on a bridge is equipped with sensors for cracks, fractures, and even ice. The smart cement wirelessly transmits data that is captured and analyzed by various devices. When data indicates fractures, engineers are notified and repairs can be made before catastrophes occur. The presence of ice can be transmitted to smart cars that will be alerted to slow down, even on their own, without the direction of the driver. The biggest example of IoT to date is with firms like Three Square Market (Astor, 2017). The company has asked, and the majority of employees have agreed, to have sensors implanted in their hands between their thumb and first finger. The sensors are used to pay for food in the cafeteria and open smart doors. In this case, humans not only make use of the physical objects that are connected in the IoT (like smart cement and cars), but are themselves the physical objects that are connected to other physical objects in the IoT. II. Trends It is easy to see the directions that engineers and technology experts can go to develop the IoT. Smart homes are a primary market. Already, refrigerators can talk to Alexi, and we can adjust our furnaces and see people at our front doors with our smart phones. A second trend is smart cities. Aspects of this are currently being developed. For example, power companies invite customers to allow them to put sensors on their air conditioners. During high use, the companies manage the power consumption across the grid, shutting down air conditioners for an hour here and an hour there so that no one is affected by a total power shortage. A third major trend in the IoT is health-monitoring devices. From Fit Bits to Life Lines, we can wear sensors that track our heart rate, number of steps, and if we have fallen and can t get up. In the case of Life Lines, data is sent to monitoring centers where alerts prompt emergency service providers to investigate problems. The Internet of You: The Ethical, Privacy, and Legal Implications... Kracher 5

6 A fourth trend is business use. Just as we are developing smart homes and cities, we are creating smart businesses. Devices with sensors are keeping track of inventory in our warehouses; remote workers are using computers and other machines that connect them to other workers and factory floors; and data is being analyzed by marketers to provide personal advertising based on real consumption (DeMers, 2017). III. Benefits and Risks The IoT is exciting because the potential benefits are enormous. Business efficiencies through the IoT can reduce costs that will drive product affordability. Health care advances can increase safety and life expectancy. Smart cities will promote environmental sustainability and help us ensure that we take care of our planet for future generations. Smart homes help us with all of these things. On the flip side, the IoT has tremendous ethical and legal risks. 1. Loss of privacy 2. Loss of Data Ownership 3. Data Breaches 4. Profiling Resulting in Targeted Advertising 5. Profiling Resulting in Discrimination 6. Use of Data Without Informed Consent 7. Personal Injury 8. Property Damage 9. Lack of Trust in the Technology System 10. Social Injustice Due to Digital or Knowledge Divide Each of us likely focuses on different risks. For example, millennials have been brought up with technology and do not tend to have a strong sense of privacy compared to baby boomers. Thus, loss of privacy through the IoT will not be a strong deterrent for them. However, baby boomers, who do tend to have a strong sense of privacy, may argue that too much information will be gathered by businesses and in our smart homes and cities. Though data may be collected with good intentions, possible future use of data could easily violate the fundamental right to privacy and end up imposing restrictions on their lifestyle choices and freedoms. The concern about privacy correlates with another risk, namely, use of data without informed consent. For example, does my 88 year old mother really understand and give her permission to Fit Bit to use the data it collects from her device to sell power bars to her or advertise a potentially useful health test for her heart? And suppose that, currently, these are the only uses of the information it collects. But in five years, if the firm partners with insurance firms to use the data it collects on thousands of clients to either reduce or raise rates based on Fit Bit information, in what way can my mother give her informed consent to sell this information to insurance firms? Another informed consent example pertains to our basic knowledge of technology. The IoT can and will use technology that is beyond the grasp of the layperson. Try as engineers might to explain it, can a layperson ever really give informed consent about its use? IV. Recommendations for Minimizing Privacy and Informed Consent Risks of the IoT There are three levels through which privacy and informed consent risks can be mitigated. First, public and governmental programs can be developed to increase citizens overall knowledge of the IoT and gen- 6 Cybersecurity and Data Privacy September 2017

7 eral awareness of its privacy issues. Information can be distributed virtually, through public library programs, etc. Second, vendors can be held responsible for informing customers about their use of the IoT and its ethical and legal implications. Businesses can develop sophisticated yet simple notices in order to promote informed consent. In addition, companies can develop decision models that question the extent of their data mining. Just because they can gather and analyze data doesn t mean they should. Policies that favor data minimization and reject data maximization without good reason can be implemented. Furthermore, products and services can be designed for privacy where it is the default rather than the exception. Third, individuals should understand their responsibility to manage the IoT. It behooves citizens and consumers to increase their understanding of the IoT, actually read privacy policies, and check their privacy settings on everything from their toasters to their smart phones. V. Conclusion The IoT is an emerging reality. A luddite philosophy is impractical in today s ever-changing technological world. The best we can do is continue to raise our awareness of the direction we are moving, understand the benefits and risks of this new frontier, and create strategies for managing the upcoming changes. With this attitude, we have the best chance of using the IoT to our advantage, rather than letting the machines eventually rule us. VI. References Astor, M. (2017). Microchip Implants for Employees? One Company Says Yes. On the World Wide Web at Accessed August 1, Burrus, D. (2014). The Internet of Things is Far Bigger Than Anyone Realizes. On the World Wide Web at Accessed May 13, DeMers, J. (2017). 7 Ways the Internet of Things Will Change Businesses in Available on the World Wide Web at Accessed July 18, Van Den Hoven, J. (2014). Fact Sheet - Ethics Subgroup IoT - Version 4.0. European Commission. Delft University of Technology. On the World Wide Web at ec.europa.eu/information_society/newsroom/cf/ dae/document.cfm?doc_id=1751. Accessed May 13, The Internet of You: The Ethical, Privacy, and Legal Implications... Kracher 7

The BIGGEST. The 2 nd Saudi International Exhibition & Conference for Internet of Things February 2019

The BIGGEST. The 2 nd Saudi International Exhibition & Conference for Internet of Things February 2019 Government Partner Redefining Communications The 2 nd Saudi International Exhibition & Conference for Internet of Things 13-15 February 2019 Riyadh International Convention & Exhibition Center www.saudiiot.com