Global Product Liability for Dumb ‘Smart’ Home Devices

The number of smart homes globally has increased to 300 million, and the smart home market is expected to reach approximately $181.4 billion by 2025. These new developments, however, are accompanied by related security risks. The attack surface for smart home devices poses latent dangers because of inadequate security that enables cybercriminals to gain access to such devices. This Article proposes extending product liability to address security vulnerabilities in smart home devices.

Part I examines the ubiquity of smart home devices. Part II sets forth the breadth of security vulnerabilities in connected devices, confirming the need to clarify that product liability applies to software and to create a global standard that reduces compliance costs for smart home device makers. Part III develops a detailed global standard for smart home device product liability, aligning U.S. product liability law with the proposed revision of the European Union’s Product Liability Directive 85/374/EEC.