This chapter addresses the privacy and security challenges presented by the rapid evolution of the Internet of Things. The exponential growth of potentially sensitive consumer data flowing from a wide range of newly connected devices has the potential to help solve societal challenges and improve consumers' lives, but such vast quantities of data also present privacy and security risks. The chapter describes some of the potential insights that can be gained through connected devices, and then lays out two risks posed by the Internet of Things: the potential for the use of sensitive personal data to make decisions about consumers without safeguards to protect them, and the possibility that privacy concerns will prevent consumers from embracing and benefitting from the Internet of Things. The chapter also discusses behind-the-scenes data collectors, known as data brokers, who play a key role in how information from connected devices can be collected and used in surprising and potentially disconcerting ways. The chapter proposes improved practices for device and service providers, including privacy by design; robust deidentification of consumer data; and transparency measures, such as clear and concise notices. The chapter also calls for improved practices—and ultimately legislation—to provide greater transparency and accountability within the data broker industry.