WASHINGTON D.C. (August 6, 2019) – Today, the U.S. District Court for the Northern District of California entered a consent order between the Federal Trade Commission (“FTC”) and D-Link Systems, Inc. Cause of Action Institute has represented D-Link Systems throughout this matter. This joint resolution resolves the FTC’s allegations about the security practices D-Link Systems used for its products. D-Link Systems is an industry leader in Internet of Things (“IoT”) and networking solutions.
Key terms of the consent agreement between D-Link Systems and the FTC include the following:
- No finding of liability for any alleged violation.
- No finding of deceptive marketing statements or practices by D-Link Systems.
- No monetary payment requirement.
- D-Link Systems continues its current comprehensive software security program and can be granted a two-year Safe Harbor for successful security certifications.
This agreement contrasts sharply with the FTC’s other consent orders with IoT companies, which include very broad restrictions on what those companies may say about their products. Importantly, unlike other IoT matters in which the FTC had alleged “deception,” today’s order contains no such restrictions.
John Vecchione, CoA Institute’s President and CEO and lead trial counsel for D-Link Systems commented on the Court’s consent agreement:
“We are pleased with the order that Judge James Donato has entered in this case. In this evolving regulatory landscape governing the Internet of Things, we are confident that this resolution embodies positive policy for the industry. We are honored to represent D-Link Systems, which will continue to make consumer privacy and security a top priority.”
Case Background:
Cause of Action Institute announced on January 10, 2017 that it would represent D-Link Systems, Inc. in its defense against the FTC.
In May of 2017, the Court instructed the FTC to dismiss D-Link Corp. from the case after D-Link Corp. filed a motion to dismiss the case on the basis that the Court lacked jurisdiction over the Taiwan-based parent company which has not conducted any business activity in the United States for many years.
In September of 2017, the Court dismissed three counts against D-Link Systems, Inc. including the FTC’s Section 5 “unfairness” claim due to the “absence of any concrete facts” supporting the FTC’s allegations of potential consumer harm.
On July 2nd, 2019, a proposed joint settlement agreement was filed with the Court. Today the Court issued a consent order approving the parties’ agreement.
For more information on the background of this case, please visit our website.
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Media Contact: Nichole Van Valkenburg, nichole.vanvalkenburg@causeofaction.org |
202-317-0266
Case Information
FTC v. D-Link Systems, Inc., Case No. 17-cv-00039-JD (N.D. Cal.)
About Cause of Action Institute
Cause of Action Institute is a 501(c)(3) non-profit, non-partisan government oversight organization working for economic liberty unencumbered by overregulation. Cause of Action uses investigative, legal, and communications tools to educate the public about government accountability, transparency, and the rule of law.
About D-Link Systems, Inc.
D-Link Systems is a global leader in connectivity for home, small business, mid- to large-sized enterprise environments, and service providers.
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