Home Security Company Settles FTC Charges it Exposed Hundreds of Private Videos Online

By Sarah Mirando | September 11, 2013

Category: Legal News

By John Curran

TRENDnet Securview camera A company that makes video cameras that can have their video accessed from the Internet has settled with the Federal Trade Commission after the agency said the company failed to provide adequate privacy protections for users. An exploit published last year allowed any member of the public with an Internet browser to view online video feeds from an overwhelming majority of those cameras. As a result, hundreds of camera feeds for home security and baby monitoring were hacked and posted online, the agency said.

Privacy class action lawsuit attorneys would note that the company had a number of free available encryption technologies so that only authorized users could access online video feeds. Instead, there was a way for anyone to access TRENDnet Securview cameras since at least April 2010 by using default means. In addition, the company transmitted certain log-in information used by smartphone applications as plain text, making it easy for hackers to obtain the information.

It is the first in what could become a trend of products that can be accessed over the Internet being monitored by the FTC for any security breaches that the maker should have been able to secure using existing technologies. A workshop in November will have the FTC discussing the “Internet of Things” and security in a “connected world.” Companies who make home automation tools and even automakers may end up being the target of the agency as well as privacy class action lawyers if they fail to adequately protect users.

In February 2012, a similar case resulted in a settlement between consumers and Summer Infant Inc. and Toys “R” Us, with plaintiffs alleging that video baby monitors transmitted video to products used by other homeowners or apartment renters without any protections. [See “Summer Infant Video Baby Monitor Class Action Settlement.”]

As the growth of online privacy issues increases, it seems that complaints against companies that make products like the TRENDNET Securview camera will be held to a new and higher standard of protection for consumers. If services and technology options are freely available, they can expect further scrutiny from the Federal Trade Commission.

While this is a new development, legal experts argue that there is likely to be growth in plaintiffs seeking damages in new Internet of Things online privacy lawsuits. Consumers who feel that they should have more protections should consider getting a legal consultation to review their options and see if they are eligible to file a complaint. The new FTC definition is likely to improve the odds for these cases, especially in light of previous consumer class action settlements by Toys “R” Us and Summer Infant to avoid online privacy lawsuits from going to trial.