Bill Overview
Title: Protecting Against Compromised Internet of Things Technology Act
Description: This bill requires the Bureau of Industry and Security within the Department of Commerce to identify foreign persons that pose a threat to supply chain security for Internet of Things devices (i.e., any object or device that is connected to the internet and is not a laptop, cell phone, or other conventional technology device) for inclusion on the Entity List. This list identifies entities reasonably believed to be involved in, or to pose a significant risk of being or becoming involved in, activities contrary to the national security or foreign policy interests of the United States. The bureau must periodically submit a list of any foreign persons identified as threats to Internet of Things device supply chains to the interagency committee that makes decisions regarding additions to, removals from, or other modifications to the Entity List. After receiving the bureau's list, the committee must vote on whether to add such foreign persons to the Entity List. A company added to the Entity List through this process may not receive any federal financial assistance, and the federal government may not contract with such a company for Internet of Things devices.
Sponsors: Rep. Obernolte, Jay [R-CA-8]
Target Audience
Population: Consumers and supply chain participants of IoT devices
Estimated Size: 100000000
- The legislation will primarily impact companies involved in the supply chain of IoT devices that are deemed a security threat.
- Consumers globally who purchase IoT devices might be indirectly affected by changes in supply chains or product availability.
- Other companies that source IoT devices might also experience changes in their ability to procure such devices.
Reasoning
- The policy's primary focus is on the security of the IoT supply chain, which means immediate and direct impacts are more likely for entities involved in manufacturing, distributing, or using IoT technology in a commercial capacity.
- The general population might experience indirect effects in the form of changes in product availability or minor shifts in product pricing, especially if supply chains have to adapt to new regulations.
- Most consumers might not see a significant impact on their day-to-day lives unless they are heavily reliant on specific IoT technology that becomes harder to find or more expensive.
- The policy aims to ensure national security, which might indirectly improve the overall well-being of citizens by ensuring safer technology in the long term.
Simulated Interviews
IoT Supply Chain Manager (San Francisco, CA)
Age: 40 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy creates a lot of uncertainty for our supply chain.
- We will have to find alternate suppliers if some of our partners are blacklisted.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 5 | 7 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
Retired (Miami, FL)
Age: 63 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I'm glad the government is taking steps to secure IoT devices.
- Security threats from foreign entities are concerning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Software Developer (Seattle, WA)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- It's going to be challenging if our suppliers are affected.
- We might need to redesign products based on available components.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Small Business Owner (Austin, TX)
Age: 35 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- I am worried about increased prices and limited availability.
- Finding new suppliers will take time and resources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Government Contractor (Chicago, IL)
Age: 42 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- We will need to be more cautious about our vendors.
- Compliance with new regulations may require additional resources.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
IoT Devices Consumer (New York, NY)
Age: 26 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 15/20
Statement of Opinion:
- Ensuring device security is important, but I hope it doesn't limit options.
- If prices go up, I'll have to reconsider some purchases.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Logistics Manager (Phoenix, AZ)
Age: 50 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- Supply chain disruptions could make my job much harder.
- We need to be agile in finding new suppliers quickly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cybersecurity Analyst (Boston, MA)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This policy gives us a framework to build more secure IoT practices.
- We'll have more demand for our consulting services, which is good for business.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
IoT Device Manufacturer (Denver, CO)
Age: 47 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- This policy could restrict some of my export markets.
- We'll need to adapt to new restrictions and regulations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 4 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Tech Industry Observer (Los Angeles, CA)
Age: 60 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 12/20
Statement of Opinion:
- This policy will shake up the IoT market.
- I'm curious to see how companies adapt to the new security measures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $80000000)
Year 2: $52000000 (Low: $32000000, High: $82000000)
Year 3: $54080000 (Low: $32960000, High: $84440000)
Year 5: $58320000 (Low: $35130000, High: $90920000)
Year 10: $69540000 (Low: $41830000, High: $108400000)
Year 100: $226100000 (Low: $136000000, High: $352400000)
Key Considerations
- The need for robust international cooperation to identify threats accurately.
- Ensuring a balance between national security and not overly disrupting foreign trade.
- Possible retaliation by foreign governments against U.S. companies.