The Five C’s: A New Framework for IoT Compliance

Regulations are here in IoT. After years of debate and passage, three of the world’s biggest markets now have hard and fast connected device rules. These cybersecurity mandates and operational guidelines mean that compliance requirements are mounting.

To increase the degree of difficulty, businesses must navigate this maze of evolving rules while managing the security and performance of thousands of devices across multiple sites.

This is no mean feat. Let’s explore how device companies can manage these challenges, mitigate risks, and abide by these rules across jurisdictions with an emerging framework for compliance: The Five C’s.

The Regulatory State of Play

Regulation in this space isn’t a big surprise. After all, devices boomed at the start of the decade and will hit 40 billion worldwide by the end of the decade. With this coming wave of devices, lawmakers believe producers need to up their game and better safeguard these endpoints from things like always-on cloud connections, discontinued software support, and default credentials. 

As a result, the following regulations, regardless of location, aim to ensure devices stay secure and reliable throughout their lifespan.

In Europe, the Cyber Resilience Act demands secure authentication, encryption, and reliable update mechanisms. Before market entry, the regulation requires manufacturers to conduct risk assessments and provide documentation demonstrating compliance. 

Further, Europe recently strengthened its Radio Equipment Directive with new cybersecurity obligations coming into force in August. These updates also require devices to implement measures preventing network disruptions, protecting user data, and mitigating fraud risks.

Similar regulations exist in the United Kingdom (UK). Following Brexit, the UK introduced its Product Security and Telecommunications Infrastructure (PSTI) Act in 2022. While aligned with EU principles, the UK takes a more prescriptive approach by mandating specific security measures for consumer devices. This includes prohibiting default passwords, creating vulnerability disclosure policies, and transparency regarding how long products will receive security updates.

Finally, the United States encourages better production practices with a consumer checkmark. The US Cyber Trust Mark – much like the Energy Star – is a new label that indicates that digital products follow best-practice security and frameworks. This bottom-up approach is less rigorous and demanding than the EU and UK – and doesn’t include fines or market restrictions for non-compliance – but it nonetheless introduces cybersecurity considerations to the world’s biggest economy.

If producers want a leg-up on the competition in the US and avoid fines or worse in the UK or EU, they’re best advised to get up to code quickly.

Creating Regulation-Ready Ecosystems

In this new world of regulation, staying compliant requires a holistic approach to device management across networks. Producers should, therefore, simplify this process with The Five C’s –  a framework that offers a structured methodology to meet regulatory demands while maintaining operational excellence.

These principles – Connectivity, Continuity, Compliance, Coexistence, and Cybersecurity – provide the foundation for secure, efficient, and regulation-ready IoT ecosystems:

1. Connectivity: Reliable and secure connections form the backbone of IoT performance. Without proper connectivity management, devices can’t fulfill their core functions or maintain security protocols across their lifecycle.
2. Continuity: Uninterrupted operation through robust device management, timely firmware updates, and proactive monitoring ensures devices remain functional and secure in dynamic environments.
3. Compliance: Beyond box-checking, following the evolving rules means integrating regulatory requirements into development and operational workflows across jurisdictions.
4. Coexistence: Devices must function harmoniously without causing interference. Testing compatibility between devices ensures reliable performance in complex deployments.
5. Cybersecurity: Protecting against unauthorized access, outdated firmware, and weak credentials prevents breaches and builds trust with both customers and regulators.

By implementing these best practices, IoT teams can effectively monitor device performance, maintain security standards, and confidently navigate the evolving regulatory landscape.

Get Up to Code Now

Regulations are not only here, but they’re here to stay. Device numbers are increasing worldwide and lawmakers – rightly so – realize that bad and/or lazy actors need production guardrails. Device makers should, therefore, get up to code now and enjoy the competitive and performance edge it provides over the years to come.

The Five C’s make compliance straightforward and systematic. By implementing this framework, organizations transform regulatory requirements from burdensome obstacles into strategic advantages. Whether managing smart homes or industrial systems, these principles ensure IoT deployments remain secure, compliant, and optimized for performance across their entire lifecycle. 

As device numbers and defensive policies grow in kind, the companies that thrive will embrace compliance as a cornerstone of innovation rather than a checkbox exercise.