An Exploration of Strict Products Liability and the Internet of Things

Abstract

Internet connectivity, software, and autonomous capabilities are increasingly integrated into all manner of devices and objects, creating the so-called Internet of Things (IoT). Historically, products with these digital components and capabilities have not had sufficient security measures incorporated into their design. In the past, strict products liability has not tended to apply to the designers, manufacturers, and/or retailers of digital products. This will change because failures of increasingly ubiquitous IoT devices are likely to have consequences such as damage to property, personal harm, or even death. These consequences trigger the potential for application of strict product liability.

This paper explains the market failures that lead to persistently poor cybersecurity, the reasons that strict product liability is likely to apply to harm caused by failure of IoT devices, and provides a roadmap for future research in this area.

Keywords: internet of things, liability, product, strict, harm, damage, economics, cyber, tort