FINANCIAL EXPERT: Importance of the EU Connected Devices Regulation and Impact on Manufacturers

FINANCIAL EXPERT: Importance of the EU Connected Devices Regulation and Impact on Manufacturers

According to a report by www.noz.de, consumer advice centers see increasing importance for security rules for networked digital devices. The EU has set out to make connected devices more secure. This affects everyday items such as smart watches, smart home servers, smart toys and security products. The regulation should apply to all products that are connected to another device or a network.

The regulation was both praised and criticized by consumer advocate Ramona Pop. The regulations should take effect three years after the law comes into force. Pop complained that politicians had given in to the pressure of manufacturers and that security-related updates did not have to be provided throughout the entire service life of products. This could result in functioning devices having to be disposed of due to a lack of security updates. In addition, the regulations should not apply until the end of 2026, which is causing dissatisfaction among consumers.

The possible effects of this regulation on the market are manifold. Manufacturers will be forced to meet new safety standards, which could lead to higher production costs. These costs could potentially be passed on to consumers by increasing the price of connected devices. Consumers could also be forced to replace their existing connected devices more quickly if manufacturers do not ensure long-term security support and updates.

The risks associated with connected smart devices affect not only security, but also consumer privacy. Devices with hidden cameras or microphones can compromise privacy. Products that record images or sounds unnoticed and wirelessly transmit them to devices such as smartphones are prohibited.

Overall, the EU regulation could lead to improved security and privacy for consumers, but potential negative impacts on the market and consumers also need to be taken into account. Implementing the regulation requires careful consideration of security requirements, costs and user-friendliness.