The Internet of Things represents “another chapter” in...

but am also sensitive to the fact that the ability to collect large amounts of information and, in some cases, to act on that information also raises important consumer privacy and data security issues,” she said at the Chamber of Commerce. Ohlhausen conceded the FTC needs to consider the “best approach” for the agency to take with the IoT, which she defined as “sensors and other types of telemetry ... embedded in physical objects that are linked through wired and wireless networks using the same Internet Protocol that connects the Internet generally.” The IoT hits a number of rapidly evolving issues, she said: Data security, mobility privacy, data collection and net neutrality. Some of these areas are best handled through federal legislation, while others should be left to the free market, she said. The best way to ensure data security is through “a single standard” that “would let companies know what to do and consumers know what to expect when a breach occurs,” she said. “Federal data security and breach notification legislation would also be beneficial to industry and consumers.” Similarly, with mobile devices, “prudence suggests that such technologies should include some way to notify users and obtain their permission” to gather personal information, she said. The free market should self regulate net neutrality, Ohlhausen said. “We do not need another layer of regulations here,” she said. “Forcing network owners to treat all users essentially alike ... in the face of a dynamic and robust online environment would contradict my understanding of good government and could impede development of the Internet, including the Internet of Things. The free market should decide how to distribute network resources, just as in any other industry.” Ohlhausen invited Chamber employees to attend the FTC’s Nov. 19 workshop on the IoT (http://1.usa.gov/17SlHm4) to discuss the issues further.