Smart homes raise controversy because they collect data about daily life. Cameras, microphones, and sensors can capture private moments, and cloud storage means data may be shared with companies or third parties. Security is another concern, since weak passwords or insecure devices can allow unwanted access. Some people dislike the idea of constant tracking or targeted advertising based on home activity.

There is also concern about dependence on a single vendor, which can lead to feature changes or product shutdowns. Clear privacy settings, strong passwords, and local control options help reduce these risks. Some critics also question environmental impact, since frequent device upgrades create electronic waste and short lifecycles that encourage constant replacement of working equipment in many homes today.