Photo Source: Вадим Биць
A recent report by UK consumer group Which? has exposed alarming practices by smart appliances, which are collecting and sharing personal data from users.
This trend, observed globally, has significant implications for New Zealand households as smart devices become increasingly common in daily life.
Unexpected Data Collection in Everyday Appliances
The Which? investigation found that some appliances are not only performing their primary functions but are also acting as data collection tools. Among the most surprising revelations was that air fryers tested in the study requested access to record audio and send it back to China.
Other devices, such as digital speakers, were discovered to contain trackers from major tech firms like Google and Meta, raising concerns about how such data might be used for advertising and commercial purposes.
Security Risks in a Connected World
Security flaws in Internet of Things (IoT) devices were also highlighted. Everyday appliances like robot vacuum cleaners and connected security cameras have been shown to be vulnerable to hacking. In some cases, such breaches allow malicious actors to access audio or video recordings from inside users’ homes.
These findings underline the risks of surveillance through devices marketed for their convenience. As Jon Duffy, Consumer New Zealand’s chief executive, explained,
“These appliances are hoovering up your data… and using that data, firstly to provide you services, but also to inform their business and potentially to remarket to you.”
Manipulating Consumer Behaviour Through Data
Experts warn that the implications of such data collection go beyond privacy concerns. Duffy pointed out how collected data can subtly manipulate consumers. For instance, cars with smart systems might steer drivers toward particular brands, and insurance companies could use driving data to adjust premiums or deny coverage based on perceived risks.
“There’s a danger when information is processed so quickly that consumers don’t realise they’re being advertised to,” Duffy noted.
Are Lower Prices Worth the Cost to Privacy?
One troubling trend highlighted in the report is the decreasing cost of data-collecting devices. Manufacturers are increasingly subsidising product prices because the value of the user data collected often outweighs the profit from the initial sale.
Duffy described this trade-off: “The value of the data they’re collecting is more valuable to the manufacturer than actually the cost of getting you to buy the thing.”
How Consumers Can Protect Themselves
For those concerned about their privacy, Duffy recommended practical steps. Avoiding appliances with unnecessary smart features and extending the life of non-networked devices can reduce the risks associated with IoT technology.
Consumers should also critically evaluate whether the convenience offered by smart features is worth the potential loss of privacy. “Does my toaster need to be plugged into the internet? What detriments could it bring?” Duffy said.
A Call for Transparency and Regulation
As IoT devices continue to proliferate, the need for stricter regulations and greater transparency from manufacturers becomes more urgent. Without stronger protections, consumers may remain unaware of the extent to which their data is being harvested and monetised.
The balance between convenience and privacy is increasingly difficult to maintain. Experts urge consumers to stay informed and demand accountability from manufacturers to safeguard their data.