IoT adoption is booming, but trust is busted
The Internet of Things (IoT) revolution has officially arrived. From smart fridges to fitness trackers to voice-activated thermostats, consumers are rapidly adopting connected devices. A 2023 Utimaco survey found that 38% of consumers use smart devices. And according to Consumers International and the Internet Society, IoT devices are now ubiquitous across markets like the U.S., UK, Canada, and Japan.
But while IoT adoption is high, consumer trust is alarmingly low. Only 14% of consumers consider smart devices secure. Over half (53%) distrust them to protect their privacy, and 75% worry that their data is being used by other organizations without permission.
63% of people surveyed find connected devices ‘creepy’ in how they collect data about people and their behaviours.
In short, consumers want the convenience of IoT without feeling like they live in a surveillance state.
For privacy and customer experience professionals, this trust gap represents both a challenge and an opportunity. The good news is that you can close the gap by designing transparent, privacy-forward IoT experiences.
What keeps consumers up at night? Privacy concerns
When it comes to IoT, consumer concerns cluster around three themes:
- Surveillance: Many consumers feel like connected devices are constantly “listening in.” Just ask anyone who’s had a smart speaker respond unprompted during a private conversation.
- Profiling: IoT devices often collect detailed behavioral data, which can be aggregated to create highly personalized user profiles, sometimes without the user’s knowledge.
- Loss of control: Most consumers aren’t sure what data is being collected, where it’s stored, who has access, or how long it’s retained. That ambiguity fuels fear.
How to earn trust: Transparency 101
Privacy in the IoT era is the backbone of consumer trust. Here are key ways to create a transparency-first IoT experience:
Clear privacy notices for connected devices
Make privacy policies easy to understand, accessible on all device interfaces, and optimized for small screens. Use plain language to disclose:
- What personal data is collected.
- Why it’s collected.
- How it’s used.
- Who it’s shared with.
- How long it’s retained.
Consent layers and user-centric UX
Effective consent is not a checkbox buried in a setup wizard. It should be:
- Layered: Start with a simple summary, then provide deeper details for curious users.
- Granular: Let users toggle consent preferences by data type or feature.
- Dynamic: Allow users to change preferences over time.
Just-in-time disclosures
Don’t rely solely on static privacy notices. Use timely prompts to inform users during setup, updates, or new feature rollouts. For example:
“This device is requesting access to your location to optimize performance. Would you like to enable this feature now?”
Data subject rights in a multi-device world
Consumers worldwide are increasingly empowered with legal rights over their personal data, thanks to comprehensive privacy laws like the GDPR, CCPA, and others. These data subject rights, which include the right to access, correct, delete, and transfer personal information, are designed to give individuals control over how their data is collected, used, and shared.
In a multi-device environment, where data flows between phones, wearables, home assistants, and other devices, honoring these rights becomes exponentially more complex. But respecting data subject requests (DSRs) is more than a regulatory checkbox. It signals to consumers that your brand takes their privacy seriously. Here’s how to do it right:
Centralized rights management
Implement a centralized system that can:
- Authenticate users across devices.
- Retrieve all relevant data.
- Fulfill DSRs like access, rectification, deletion, and portability.
Granular control and real-time sync
Let users:
- See which device is collecting what data.
- Revoke consent for specific data types or devices.
- Sync preferences across their entire ecosystem.
Privacy by design
Build in “Do Not Collect” options, factory reset privacy settings, and the ability to disable sensors or wireless connections. Bonus points for device-level privacy dashboards. For more details on engineering privacy into your IoT lifecycle from design to decommission, read: Engineering Privacy into the IoT Product Lifecycle.
When complaints come knocking: Responding with empathy and precision
Even with robust privacy design, complaints are inevitable. Here are tips for responding to consumer IoT privacy issues:
- Acknowledge quickly: Send a confirmation of receipt and timeline for follow-up.
- Investigate thoroughly: Determine whether the issue stems from a bug, policy gap, or user misunderstanding.
- Explain clearly: Outline what data was collected, why, and how it’s secured.
- Remediate transparently: Offer solutions, such as deleting data or disabling features, and explain next steps.
- Document everything: Keep detailed logs to show regulators you take complaints seriously.
What a trustworthy IoT privacy experience looks like
Picture this: a user buys a new smart thermostat. During setup, they see a friendly privacy overview that links to more detailed information. They’re asked for consent to share usage data and can toggle options. Their choices sync to a mobile app, where they can later modify settings or submit a data deletion request. Security features include encrypted communications, two-factor authentication, and regular updates.
This isn’t a fantasy. It’s what consumers expect and what leading companies are already doing.
To build such an experience, follow this framework:
- Transparency: Privacy policies that are visible, understandable, and accessible.
- User control: Tools to manage preferences, data, and device connectivity.
- Security: Strong encryption, secure defaults, and fast patching.
- Responsiveness: Clear channels for feedback, complaints, and requests.
- Accountability: Internal audits, third-party assessments, and documented controls.
TrustArc tools: Your IoT privacy wingman
You don’t have to do it alone. TrustArc offers purpose-built tools to simplify privacy management for IoT products:
Stay compliant with global cookie and tracker laws (GDPR, CCPA, Quebec’s Law 25, and more) using automated scanning, easy setup, and seamless user experiences.
Capture, sync, and honor consent across channels, brands, and devices. Offer users a centralized portal to manage their privacy preferences at any time.
Automate the intake, routing, and fulfillment of DSRs at scale. Our solution supports 183+ jurisdictions and integrates across web, mobile, and app environments.
From smart appliances to wearable tech, IoT privacy management doesn’t have to be overwhelming. With the right tools and practices, you can meet global compliance obligations, reduce risk, and build meaningful trust with your customers.
So go ahead and close that trust gap one transparent prompt, one thoughtful feature, and one satisfied consumer at a time.
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