The Washing Machine and the Internet of Things: A Governance Story

Φ – IoT governance washing machine – At first glance, the washing machine is a simple device: a drum, some water, detergent, and a programme. But in the era of the Internet of Things (IoT), it becomes much more. It collects data, communicates with suppliers, predicts maintenance needs, and can even reorder detergent automatically. What once was a purely mechanical helper has become a digital node in a vast network – and with that shift comes an entirely new governance challenge.

Who owns the data? Who is accountable if a cyberattack originates from a household appliance? And how can trust be maintained when the line between convenience and dependency becomes blurred? The humble washing machine becomes a mirror for society’s broader struggle with governance in a digital, interconnected world.

In this article we explore how the IoT washing machine symbolises the governance questions of our time: privacy, liability, oversight, regulatory frameworks, and the role of governance models such as COSO and the Three Lines Model.

From a Simple Drum to a Smart Machine

The history of the washing machine started with mechanical tools in the nineteenth century. By the mid-twentieth century, electric versions were mainstream. In the 1990s, digital controls emerged. Today, washing machines come with Wi-Fi connections, sensors, and smartphone apps. They are no longer isolated devices but active participants in the Internet of Things, where billions of objects are connected.

This raises questions that used to apply only to banks or multinationals: how is data secured? Who has access to it? And how is continuity guaranteed if the manufacturer decides to stop supporting software updates?

IoT governance washing machine

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What IoT Means for Governance

Governance is about how organisations are directed, controlled, and held accountable. In IoT ecosystems, responsibility is spread across a complex chain: the manufacturer, the software developer, the cloud provider, the energy supplier, and ultimately the consumer. Without clear governance arrangements, that chain becomes fragile.

Take a simple example: imagine a manufacturer decides to stop releasing software patches. The machine still washes clothes, but outdated software makes it a target for hackers. Who is responsible – the producer, the software partner, or the consumer who keeps using it? Governance provides the framework to answer such questions through defined roles, oversight, and transparency.

 

Data Ownership and Privacy

A connected washing machine generates vast amounts of data: frequency of use, energy consumption, maintenance cycles, even the type of detergent purchased. For businesses, such data is a treasure trove. But who owns it?

Under the EU’s GDPR, consumers remain the owners of their personal data. In practice, however, manufacturers often include broad consent clauses in their terms and conditions. The ethical question is whether consent hidden in fine print is sufficient. Governance demands more: clear explanations, real choice, and a guarantee that data will not be sold or repurposed without permission.

Liability and Security

A washing machine may appear harmless, but as part of an IoT network it can act as a weak entry point. There are well-documented cases of hackers infiltrating systems via smart fridges or security cameras. A poorly secured washing machine poses the same risk.

Good governance requires that producers take responsibility for robust security measures and provide regular updates. It also means regulators must ensure compliance. Beyond technical security, there is the legal question: who pays if a data breach originates from a connected appliance? Without clear accountability, consumer trust will erode.


Regulation and Oversight

Over the past years, regulators have world-wide introduced several frameworks that directly affect IoT appliances:

  • GDPR (EU) – safeguarding personal data, serving as a global benchmark for privacy rules.
  • Cyber Resilience Act (EU) – obliging manufacturers to provide timely security updates.
  • AI Act (EU) – relevant as appliances increasingly incorporate self-learning algorithms.
  • FTC enforcement (US) – the Federal Trade Commission has fined IoT manufacturers for unfair practices and weak security.
  • POPIA (South Africa) – regulating personal data use, combined with ICASA oversight in digital communications.
  • India’s Digital Personal Data Protection Act (2023) – establishing consent-based processing and corporate accountability for data misuse.
  • Brazil’s LGPD (Lei Geral de Proteção de Dados) – a comprehensive data protection law modelled after GDPR, applied to all companies handling Brazilian user data.

     

     

At the European level, governance of IoT devices is shaped by EU law, including GDPR and the Cyber Resilience Act, which safeguard privacy and security. In the UK, Ofcom and the Information Commissioner’s Office (ICO) play a key role in monitoring both market fairness and data protection.

In the United States, the Federal Trade Commission (FTC) has taken enforcement action against IoT manufacturers for inadequate security and unfair practices. South Africa adds a further dimension through its POPIA data protection regime and the oversight of ICASA in digital communications.


Applying Governance Models

How can organisations actually structure governance around IoT? Established frameworks provide guidance:

  • COSO Internal Control Framework – helps design controls for data reliability, access, and reporting integrity.

  • The Three Lines Model – allocates responsibility across three levels: management (first line), risk & compliance functions (second line), and independent audit or oversight (third line).

IoT governance washing machine

Applied to a washing machine manufacturer: the company itself ensures secure coding and patching (first line); an internal risk department monitors update cycles (second line); and auditors or regulators verify that claims are accurate (third line).

Read an example by the Delft University of Technology – Integration of IoT into e-government.


Practical Cases and Examples

Real-world incidents illustrate that governance in IoT is not abstract theory:

  • In 2014, researchers showed that hackers could send spam via smart fridges. A washing machine could just as easily be abused.Here is the BBC News item – Fridge sends spam emails as attack hits smart gadgets.

  • Certain manufacturers, such as Samsung and LG, tied customers to their own detergent subscription models, raising concerns of unfair lock-in

    Read something local from India Finshots – will appliance subscriptions work in India?

  • Miele faced criticism when vulnerabilities were found in their connected appliances, allowing external access.

These examples underline why governance – clarity about responsibility, transparency, and consumer rights – is essential.


The Future: Sustainability and Trust

IoT washing machines of the future will be even smarter. They will anticipate wear and tear, schedule themselves for off-peak electricity hours, and fit into circular business models where consumers pay per wash rather than purchasing the device outright.

Governance here extends beyond privacy and security. It touches on sustainability, fairness in contracts, and the right to repair. Ultimately, trust becomes the decisive factor: consumers must believe that their smart machine does what it promises – and nothing more.


Conclusion: The Washing Machine as a Mirror of Governance

Tomorrow’s washing machine is no longer a stand-alone device but a digital hub within a broader ecosystem. It embodies the governance dilemmas of our age: privacy, liability, oversight, sustainability, and trust.

Whether a washing machine is running or idle, governance remains crucial. It ensures consumers are protected, companies are accountable, and technology serves society rather than undermines it.

For more on the fundamentals of good governance, see our article Good Corporate Governance.

Who owns the data generated by a smart washing machine?

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Legally, the consumer remains the owner of personal data under GDPR. However, many manufacturers require broad consent through terms and conditions. Strong governance requires that manufacturers explain clearly what data is collected, how it is used, and that they provide meaningful choices to consumers.

What happens if my washing machine stops receiving software updates?

ESG Reporting

Without updates, connected appliances become vulnerable to cyberattacks. The EU Cyber Resilience Act obliges manufacturers to provide updates for a minimum period. If they fail, they can be held liable. For consumers, it is important to check how long updates are guaranteed before purchase.

How do regulators ensure IoT devices remain safe and fair?

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In the UK, Ofcom and the Information Commissioner’s Office (ICO) supervise aspects of IoT safety and data use. In the EU, regulators enforce GDPR, the AI Act, and the Cyber Resilience Act. Oversight means that manufacturers must provide transparent information, fair contract terms, and adequate security standards.

Who owns the data generated by a smart washing machine?

Data ownership IoT

Legally, the consumer remains the owner of personal data under GDPR. However, many manufacturers include broad consent clauses in their terms and conditions. Good governance requires that manufacturers explain clearly what data is collected, how it will be used, and offer meaningful choices to the consumer.

What happens if my washing machine stops receiving software updates?

Software updates IoT

Without regular updates, a connected appliance becomes vulnerable to cyberattacks. Under the EU Cyber Resilience Act, manufacturers are obliged to provide updates for a defined minimum period. If they fail to do so, they may be held liable for any resulting damage. Consumers should always check the guaranteed support period before purchase.

How do regulators ensure IoT devices remain safe and fair?

IoT devices remain safe

Regulators such as the UK’s Ofcom and ICO, the US Federal Trade Commission, and the EU under GDPR and the AI Act set clear requirements for transparency, data protection, and security. Oversight includes monitoring unfair contract terms, ensuring timely security updates, and enforcing penalties when manufacturers fail to comply.