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93 Tex. L. Rev. 85 (2014-2015)
Regulating the Internet of Things: First Steps toward Managing Discrimination, Privacy, Security and Consent

handle is hein.journals/tlr93 and id is 95 raw text is: Regulating the Internet of Things: First Steps
Toward Managing Discrimination, Privacy,
Security, and Consent
Scott R. Peppet*
The consumer Internet of Things is suddenly reality, not science fiction.
Electronic sensors are now ubiquitous in our smartphones, cars, homes, electric
systems, health-care devices, fitness monitors, and workplaces.   These
connected, sensor-based devices create new types and unprecedented quantities
of detailed, high-quality information about our everyday actions, habits,
personalities, and preferences. Much of this undoubtedly increases social wel-
fare. For example, insurers can price automobile coverage more accurately by
using sensors to measure exactly how you drive (e.g., Progressive 's Snapshot
system), which should theoretically lower the overall cost of insurance. But the
Internet of Things raises new and difficult questions as well. This Article shows
that four inherent aspects of sensor-based technologies-the compounding
effects of what computer scientists call sensor fusion,  the near impossibility of
truly de-identifying sensor data, the likelihood that Internet of Things devices
will be inherently prone to security flaws, and the difficulty of meaningful
consumer consent in this context-create very real discrimination, privacy,
security, and consent problems. As connected, sensor-based devices tell us more
and more about ourselves and each other, what discrimination-racial,
economic, or otherwise-will that permit, and how should we constrain socially
obnoxious manifestations? As the Internet of Things generates ever more
massive and nuanced datasets about consumer behavior, how to protect privacy ?
How to deal with the reality that sensors are particularly vulnerable to security
risks? How should the law treat-and how much should policy depend upon-
consumer consent in a context in which true informed choice may be impossible?
This Article is the first legal work to describe the new connected world we are
creating, address these four interrelated problems, and propose concrete first
steps for a regulatory approach to the Internet of Things.
INTRODUCTION   ........................................................................................  87
I.  THE  INTERNET  OF THINGS ...............................................................  98
A.  Health  &  Fitness Sensors ....................................................... 98
1.  Countertop  Devices ......................................................... 99
2.  W earable  Sensors .............................................................. 10 1
3.  Intimate  Contact Sensors .................................................. 102
* Professor of Law, University of Colorado School of Law. I am grateful to the faculty of the
University of Colorado Law School for their input, and particularly to Paul Ohm and Harry Surden
for their thoughts. I also thank the participants at the Federal Trade Commission's Internet of Things
Workshop (November 19, 2013), who gave helpful comments on many of these ideas. Finally,
thank you to my research assistants Carey DeGenero and Brian Petz for their help.

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