The Internet of Things (IoT) has exploded in recent years, connecting everything from refrigerators to security cameras to our homes and everyday lives. While this connectivity creates opportunities, it also creates risks if devices are not designed and built with user privacy and security in mind.
As IoT continues to grow rapidly, it’s important for manufacturers to focus on responsible development that respects user trust and autonomy. With over 125 billion connected devices projected to be in use by 2030, the need for ethical standards has never been greater. If left unaddressed, privacy and security flaws in IoT could undermine consumer confidence and hinder continued innovation.
Here are a few of the key ethical and privacy issues that must be considered when developing IoT devices, along with best practices manufacturers can follow to build trust and protection into connected products.
Transparency About Data Collection and Use
One of the biggest risks inherent in connected devices is a lack of transparency around what types of data they collect and how that information is used. Without clear disclosures and consent mechanisms, users have no way of knowing if a device or app could be passively monitoring private spaces or activities without permission.
IoT manufacturers should be fully transparent in explaining exactly what types of data (audio, video, location, usage patterns etc.) each device collects and stores, both in initial setup and ongoing use. Clear explanations of why each data point is necessary for the device to function properly helps users understand the value exchange.
Disclosures should also specify how long data is stored, whether it’s linked to individual users or anonymized, if/how it’s shared with third parties, and what security measures are in place to protect privacy. Users should have simple ways to access this information about a device at any time, not just during setup.
Intentional Design for Data Minimization
Rather than focusing first on ways to harvest and monetize user data, IoT product designers should start with the principle of data minimization. Devices should only collect the basic data necessary to deliver their core functions, avoiding passive contextual monitoring whenever possible.
Where extra data points offer clear value or functionality improvements, users must be able to choose whether or not those features are enabled on an opt-in basis. And devices should provide easy ways for users to review, correct or delete any personal information at any time.
An ethically designed IoT product minimizes inherent privacy risks through attentive engineering – collecting just enough to operate safely and securely, without assumptions of implied consent for expanded data use down the line.
Responsible Updates and Lifecycle Management
IoT devices are essentially small computers that will likely need ongoing software updates over their usable lifetimes. But if an connected product is abandoned by its manufacturer before being properly retired, it can become a vector for security exploits or unconstrained data flows as it goes unsupported.
Part of ethical IoT development involves clear plans and commitments around ongoing lifecycle management. Users need transparency into projected support windows and eventual retirement policies for devices. Manufacturers must also facilitate ways for customers to securely wipe devices and delete accounts at the end of product support.
Some manufacturers have started offering services to remotely retire outdated and unsupported IoT products no longer in user hands, eliminating security vulnerabilities. Establishing self-imposed “right to be forgotten” policies helps ensure data flows and devices themselves are responsibly terminated at obsolescence.
Vulnerability Disclosure and Response
No system can ever be made 100% secure, so manufacturers of connected devices should implement coordinated vulnerability disclosure policies that allow independent security researchers to flag issues privately before wider disclosure.
Having public contact points and bug bounty programs encourages white hat collaboration to strengthen systems proactively. And when flaws inevitably come to light, rapid and transparent response—including clear communications to affected users—should be standard practice.
An ethical stance does not turn a blind eye to flaws, but openly acknowledges fallibility while rigorously protecting users. Policies must balance openness with coordinated patching to maintain trust.
User Control and Device Ownership
As IoT expands, questions grow around who truly owns not just devices themselves but also the data and functionality they enable. While manufacturers have legitimate business needs, users must feel firmly in control of how “their” devices operate in order to trust connected products at home.
Basic principles of informed consent and individual control can be built into the design of IoT through customizable permissions and settings. Users should always have final say over any remote access or updates, and simple ways to revoke data access or deregister devices entirely if desired.
Clear codification that users—not the companies that make devices—are the owners helps establish equitable expectations up front. With ownership come responsibilities of security too, but control is a baseline requirement for trust. Ethical IoT prioritizes the user experience above all else.
The growth of IoT brings both opportunity and obligation. By proactively embedding core privacy and ethics principles into the development and management of connected products, manufacturers can help ensure this revolution benefits users and builds long term confidence in an increasingly digital world. Early steps to respect users through transparent, protective design will be investments in both trust and continued responsible innovation.