- The report is part of a push to create a universal opt-out mechanism for consumers using IoT devices
- The federal recommendation is for privacy disclosures on Monroney labels, the windshield stickers dealers currently use
The federal government wants privacy disclosures on new-vehicle windshields as part of a broad range of recommendations concerning internet-connected devices.
The Commerce Department’s Internet of Things (IoT) Advisory Board recently issued a report with the National Institute of Standards and Technology (NIST) that pushes for universal opt-outs allowing consumers to more easily manage privacy settings across various IoT devices.
The report’s recommendation asks for privacy disclosures on Monroney labels, the windshield stickers dealers use to tell buyers a given car model’s fuel efficiency and safety ratings. The labels should disclose whether vehicles collect personal data, the data is sold, if universal opt-out from data collection is possible and a QR code linking to an online privacy policy.
Protecting Consumers
“This initiative is primarily driven by the need to enhance consumer protection and address growing concerns over personal data use and sharing by IoT devices in automobiles,” the report says, adding hackers have frequently breached IoT devices to commit cybercrimes.
The issue was first raised by a Mozilla Foundation probe which documented widespread failures by automakers to protect consumers’ privacy and clearly notify them about data collection and sharing practices.
The advisory board’s report has been shared with an IoT-focused federal working group composed of government officials which will work with executive branch agencies and Congress to determine whether legislation is required to update the stickers to include privacy language or whether the executive branch can implement the rule.
Privacy Settings
Creating a universal opt-out mechanism for consumers using IoT devices and applications will allow users to more easily set their privacy preferences, according to the report.
IoT manufacturers and app developers are expected to push back on the proposal due to potential costs and complexities involved in establishing the program, the report says, acknowledging that setting up a universal opt-out system will be challenging technologically.
Additional steps the report offers include Congress and the executive branch regulating third-party sharing and use of IoT device data, push manufacturers to use more digestible language in privacy policies and require notices so consumers know when IoT devices default to allowing location tracking.