Christopher Wolf & Jules Polonetsky, An Updated Privacy Paradigm for the “Internet of Things” (Nov. 19, 2013) (full-text).
This paper examines the appropriate privacy paradigm for the world of the Internet of Things. It posits that current implementations of the Fair Information Practice Principles (FIPPs) are not easy adapted in the world of the Internet of Things, where nearly every device or appliance will be connected to the internet and collecting data about consumers. Attempting to provide meaningful "notice" in a world of billions of connected devices is not feasible when many devices lack meaningful user interfaces or screens, and relying on consumers to read thousands of Privacy Policies will lead to many simply "giving up" on their privacy.
Similarly, FIPP's strict usage limitations may thwart technological progress, because many socially valuable uses of data are not discovered until the data is already collected. The challenge then is to allow practices that will support progress, while providing appropriate controls over those practices that should be forestalled or constrained by appropriate consent.