There is enormous growth in the number of 'things' that incorporate sensors to capture data, photos and video and that can interact with people, IT systems and other things directly using Internet connectivity. The potential benefits and risks that arise have resulted in the Internet of Things (IoT) emerging as a critical area of interest to policymakers. Additionally, consumers have a growing awareness of the connected devices and sensors that are a part of the IoT, mainly through their domestic equipment, such as smart TVs and Internet-accessible home security systems and control systems for heating and lighting. It is evident that the IoT holds the potential for major economic opportunities across a wide variety of consumer and industrial sectors; however, there are important policy issues that affect the adoption of the IoT across these sectors.