Internet of insecurity: liability risks for business

The emergence of the Internet of Things (IoT – the interconnection of everyday objects via the internet) raises important issues relating to security and hacking.  In particular, the potential for civil claims against manufacturers resulting from a failure to provide any or sufficient security is not known.

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Galaxy Note 7: can liability be avoided?

The latest global recall relates to the Galaxy Note 7 which, just over a week ago, was recalled by Samsung after reports emerged that the device could explode during or after charging.  On the T-Mobile website, as at 9 September 2016, T-Mobile confirms that Samsung is recalling the Galaxy Note 7 due to “battery safety concerns”.  T-Mobile is clear about the risks involved in using the Galaxy and report that the number of fires reported globally as of 1 September, were 35.  In the context of the number sold worldwide this is a tiny percentage but nevertheless such failure could be catastrophic and as a supplier of the product, T-Mobile has sensibly taken the precaution of providing a frank statement about the risks involved in continuing to use the product.

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