CSIA 413 Week 1 Discussion: Privacy and Corporate Liability
Introduction
The rapid evolution of technology has brought forth a new era of convenience and connectivity through smart devices such as voice-activated smart home controllers. These devices are a critical source of convenience for users. However, there is a risk concerned with the installation of these devices. One such is the infringement of privacy, which is a critical concern raised by users. For the above reason, Red Clay must understand how the privacy concerns over the use of these smart home devices come about and how Red Clay Renovation as a contracted installation firm may be liable to legal implications arising from privacy issues by these devices.
The functionality of Smart Home Devices
The working of smart home devices such as voice-activated controllers relies on the collection of data. The data include voice inputs, motion data, and usage patterns. This data is used within the devices to activate certain sensors to execute the user-commanded function such as switching lights. For instance, a voice-activated device might constantly listen for a specific wake word, which triggers the recording of voice commands as an instance of data collection.
Privacy Concerns
The privacy risks associated with the functionality of the devices are based on the accuracy and usage of the sensitive data stored within and their ability to execute functions autonomously. For instance, if the voice recognition system mistakenly activates due to a similar-sounding word or noise, it might inadvertently record sensitive conversations. A second type of risk is the possibility of unauthorized accessibility to the device, thus exposing large quantities of private data such as recorded conversations in the case of the voice-activated controllers. Moreover, the collection of user patterns is also private data whose exposure may cause security vulnerabilities for the user. In the case of the occurrence of such risks, the installation agent such as Red Clay Renovations is liable for damages that may occur to the user, in this case, the client.
The following are some of the potential impacts of such an outcome for the company. First, the company may suffer from legal implications from lawsuits by the clients. The legal actions and fines drain the company’s resources in covering for litigation and potential damages (Gatzlaff & McCullough, 2010). Moreover, Red Clay might be liable for compensating customers affected by the privacy infringement. Secondly, the company may suffer reputational damage. As a result, a damaged reputation impacts on the client's trust as a marketing strategy (Chen & Jai, 2021). The company may lose its existing and prospective clients due to their privacy concerns based on the publishing of legal proceedings against the company on grounds of data breach.
In summary, there are vulnerabilities identified with the data collection and functionality of smart devices that Red
Clay installs for its clients. These are data breaches and misuse, unauthorized access to the installed devices, and burglary risk due to data manipulation (Koyame-Marsh, & Marsh, 2014). For these reasons, Red Clay needs to comply with the regulatory and legal requirements associated with the procurement and installation of smart devices from third-party dealers (Nikkhah & Grover, 2022).
It is critical for the company to exercise caution in contracting dealers in smart devices. The above is based on the liability that the company has for any damages or breaches as specified in data protection and privacy laws. It is in the best interest of the company that we invest in associated security measures such as training of the employees. Additionally, the company should align its policies and client relations with international standards in privacy and data security. The vulnerabilities and implications of data breach and misuse necessitate the need for Red Clay to invest in data secure protocols.
