Security Update Labels: Establishing Economic Incentives for Security Patching of IoT Consumer Products

With the expansion of the Internet of Things (IoT), the number of security incidents due to insecure and misconfigured IoT devices is increasing. Especially on the consumer market, manufacturers focus on new features and early releases at the expense of a comprehensive security strategy. Hence, experts have started calling for regulation of the IoT consumer market, while policymakers are seeking for suitable regulatory approaches. We investigate how manufacturers can be incentivized to increase sustainable security efforts for IoT products. We propose mandatory security update labels that inform consumers during buying decisions about the willingness of the manufacturer to provide security updates in the future. Mandatory means that the labels explicitly state when security updates are not guaranteed. We conducted a user study with more than 1,400 participants to assess the importance of security update labels for the consumer choice by means of a conjoint analysis. The results show that the availability of security updates (until which date the updates are guaranteed) accounts for 8% to 35% impact on overall consumers' choice, depending on the perceived security risk of the product category. For products with a high perceived security risk, this availability is twice as important as other high-ranked product attributes. Moreover, provisioning time for security updates (how quickly the product will be patched after a vulnerability is discovered) additionally accounts for 7% to 25% impact on consumers' choices. The proposed labels are intuitively understood by consumers, do not require product assessments by third parties before release, and have a potential to incentivize manufacturers to provide sustainable security support.