Jenner & Block

SB-327: Why Your Next Refrigerator Might Have a Password Longer than Your Email’s

Consumers are increasingly embracing connected wearables and home appliances, such as fitness trackers and smart thermostats. According to one projection, at the end of 2018, the number of these “Internet of Things” (“IoT”) devices surpassed the number of mobile phones. By 2020, the worldwide installed IoT base is projected to grow to over 30 billion devices. IoT technology has the potential to usher in an era of enhanced convenience, safety, and efficiency, while also fueling the growing $4 trillion wellness economy. But IoT providers should also prepare themselves for a building wave of attention and regulation following a number of headline-grabbing incidents or breaches, such as the hacking of baby monitors and medical devices. Indeed, in less than a year, designing devices with “reasonable security features” like individualized preprogrammed passwords will be table stakes for IoT device manufacturers.