FTC Sues D-Link, Alleging Shoddy Security Practices

Remember the day in October 2016 when hijacked Internet of Things devices were used to take down parts of the internet in a DDoS attack? It was the largest such attack to date and perhaps it was the final straw for the Federal Trade Commission. It seems the U.S. government might be getting serious about Internet of Things security. The Federal Trade Commission filed a complaint against against Taiwanese computer networking equipment manufacturer D-Link Corporation and its U.S. subsidiary on Jan. 5, 2017.

The complaint is detailed in a press release posted on the FTC website.

But here’s a quick synopsis: The FTC charges that D-Link put consumers’ privacy at risk due to the inadequate security of its computer routers and cameras. They allege inadequate security measures left the devices vulnerable to hackers. The complaint was filed in the Northern District of California. It charges that “D-Link failed to take reasonable steps to secure its routers and Internet Protocol (IP) cameras, potentially compromising sensitive consumer information, including live video and audio feeds from D-Link IP cameras.”

It’s not the first such suit. The FTC has also brought cases against ASUS, a computer hardware manufacturer, and TRENDnet, a marketer of video cameras.

“Hackers are increasingly targeting consumer routers and IP cameras — and the consequences for consumers can include device compromise and exposure of their sensitive personal information,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “When manufacturers tell consumers that their equipment is secure, it’s critical that they take the necessary steps to make sure that’s true.”

Jeremy Goldman, a partner at law firm Frankfurt Kurnit Klein and Selz who specializes in data security matters, was interviewed for this story in Quartz. He calls the lawsuit a “loud warning shot” for IoT companies using less than stellar security practices.

The Quartz story brings up the fact that prior to this the FTC has resisted policing Iot, “preferring instead that the nascent industry self-regulate for now, so as not to strangle innovation in the cradle.”

D-Link released a press release in response to the suit, saying it will “vigorously defend itself against the unwarranted and baseless charges made by the Federal Trade Commission.”

 

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