When Google closes the Nest deal, privacy issues for the internet of things will hit the big time

Gigaom

Google rocked the smart home market Monday with its intention to purchase connected home thermostat maker Nest for $3.2 billion, which will force a much-needed conversation about data privacy and security for the internet of things.

It’s a conversation that has seemingly stalled as advocates for the connected home expound upon the benefits in convenience, energy efficiency and even the health of people who are collecting and connecting their data and devices together through a variety of gadgets and services. On the other side are hackers and security researchers who warn how easy some of the devices are to exploit — gaining control of data or even video streams about what’s going on in the home.

So far the government, in the form of the Federal Trade Commission — has been reluctant to make rules and is still gathering information. A security research told the FTC at a Nov…

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