05/17/2017
05/11/2017
Court Orders Dismissal of D-Link Corp. from FTC Data Security Case
SAN FRANCISCO – U.S. District Judge James Donato has instructed the Federal Trade Commission (“FTC”) to dismiss Taiwan-based D-Link Corporation (“D-Link Corp.”) from a case brought by the FTC in the U.S. District Court for Northern District of California involving unfounded allegations as to security practices for routers and IP cameras. On April 3, 2017, D-Link Corp. filed a motion to dismiss the case because the Court lacked jurisdiction over the company. FTC’s dismissal of D-Link Corp. renders that motion moot. The case will now proceed with California-based D-Link Systems, Inc. as the sole Defendant.
Cause of Action Institute Assistant Vice President Patrick Massari: “The FTC sued a Taiwanese-based corporation without any factual predicate or consumer victims, real or imagined, exceeding the bounds of its regulatory authority. We are grateful for the Court’s directive and pleased with this resolution of issues raised by D-Link Corp.’s motion to dismiss. We look forward to continuing to vigorously defend this case on behalf of D-Link Systems, Inc.”
Background:
In early January, the FTC filed a complaint against D-Link Systems Inc. and D-Link Corp. The complaint makes vague and unsubstantiated allegations, without asserting a single data breach of any product sold in the U.S. by either company. Instead, the FTC’s complaint relies on unspecified press reports and mere speculation that consumers were placed “at risk,” but fails to allege, as it must, that consumers suffered or are likely to suffer actual or substantial injury. D-Link Systems continues to stand behind its products and maintains a robust range of procedures to address potential security vulnerabilities.
For information regarding this press release, please contact Zachary Kurz, Director of Communications: zachary.kurz@causeofaction.org
01/6/2017
Another Midnight Power Grab: FTC Again Grasping at Straws in Data Security
Agency files desperate eleventh-hour data security complaint against D-Link without a single instance of actual or likely substantial harm to any consumer
Washington D.C. – The Federal Trade Commission (“FTC”) yesterday filed a complaint against D-Link Systems, Inc. (“D-Link”) claiming a violation of the Federal Trade Commission Act resulting from unsupported allegations of data security lapses in D-Link’s Consumer IP routers and IP cameras.
“The FTC has again overstepped its legal authority under Section 5 of the Federal Trade Commission Act and is bringing this enforcement action without precedent or facts on its side,” said Cause of Action Institute Assistant Vice President Patrick Massari. “In D-Link’s 30-year history, there is no evidence of a single security breach that has resulted in harm to any consumer. As was the case in the FTC’s assault on LabMD, a small cancer-detection laboratory that was destroyed by the FTC’s zeal to dismantle any business that dared challenge its authority, the purpose of this case is to again intimidate businesses and attempt to extend its authority beyond what Congress intended. D-Link’s ongoing vigorous defense of its security practices and fight against the FTC’s overreach through the legal system is a courageous step in the right direction for all consumer router companies who wish to fight against FTC’s disregard for facts and the rule of law. Commissioners Ramirez and McSweeny have not learned the lesson of the LabMD case. FTC’s predatory appetite for overzealous and baseless persecution continues unabated.”
The FTC complaint predictably alleges that D-Link has “failed to take reasonable steps to secure the software for their routers and IP cameras, which [are] offered to consumers, respectfully, for the purpose of protecting their local networks and accessing sensitive personal information.” D-Link denies the unwarranted allegations outlined in the FTC complaint and asserts it will vigorously defend the action.
The FTC has made vague and unsubstantiated allegations relating to Consumer IP routers and IP cameras. D-Link maintains a robust range of procedures to address potential security issues, which exist in all Internet of Things devices. Notably, the complaint does not allege any breach of a D-Link device. Instead, the FTC speculates that consumers were placed “at risk” to be hacked, but fails to allege, as it must, that actual consumers suffered or are likely to suffer actual substantial injuries.
About Cause of Action Institute:
To enhance individual and economic liberty, we work to limit the power of the administrative state to make decisions that are contrary to freedom and prosperity by advocating for a transparent and accountable government free from waste, fraud, abuse and cronyism.
For information regarding this press release, please contact Zachary Kurz, Director of Communications at CoA Institute: zachary.kurz@causeofaction.org