House Lawmakers Weigh Privacy Concerns With Draft IoT Bill

Discussing bipartisan draft legislation that would direct a Department of Commerce study on the IoT, House lawmakers from both parties said Tuesday that Congress isn't paying enough attention to consumer privacy. The Digital Commerce Subcommittee held a hearing on draft legislation from Chairman Bob Latta, R-Ohio, and Rep. Peter Welch, D-Vt. Rep. Frank Pallone, D-N.J., said the State of Modern Application, Research and Trends of IoT (Smart) Act would produce for Congress a central source of information on how industry is integrating IoT devices and how the country is adapting.

Ranking member Jan Schakowsky, D-Ill., said the IoT raises significant privacy concerns because the most harmless domestic appliances can collect user data. Consumer privacy goes by the wayside when industry is allowed to self-regulate, she said, adding she’s willing to engage in a bipartisan effort to move the legislation forward. Rep. Debbie Dingell, D-Mich., noting the internet thrived because of a light regulatory touch, said Congress needs to pay more attention to privacy concerns. The recent Facebook hearings (see 1804100054 and 1804110065) showed people have no idea about the extent of data tracking, she said. Rep. Mimi Walters, R-Calif., asked witnesses how government can protect consumer privacy without losing big potential of benefits from a more connected world.

U.S. Chamber of Commerce Senior Vice President-Chamber Technology Engagement Center Tim Day said to expect an announcement soon from the Chamber about the importance of privacy principles, resulting from recent discussions in Washington. Executives want the ability to invest and take their ideas to the next level, he said, so there are worries about regulation getting in the way. Intel Vice President-IoT Group Dipti Vachani testified that privacy is of “utmost importance,” in terms of data collection and storage, when designing products. Center for Democracy and Technology Deputy Director-Freedom, Security and Technology Project Michelle Richardson noted the information collected by these devices is unique -- heartbeat, location and dietary habits, for example -- and it can produce a very “rich picture” of users. People are surprised how extensive data collection is, which was one of the revelations from hearings with Facebook CEO Mark Zuckerberg, she said.

Welch cited a McKinsey & Co. study showing the IoT can produce between $4 trillion and $11 trillion in global economic output by 2025. Latta said the IoT is revolutionizing many things. He and Welch established an IoT working group, which produced stakeholder input for the legislation. House Commerce Committee Chairman Greg Walden, R-Ore., said the bill is “one way that we will continue to fulfill our duty to the American people to remove barriers to success while promoting policies that help our workforce.”