"[1] The FTC found that TRENDnet had violated Section 5(a) of the Federal Trade Commission Act by falsely advertising that IP cameras it sold could transmit video on the internet securely.
[2] On January 16, 2014 the FTC issued a Decision and Order [3] obliging TRENDnet, among other things, to cease misrepresenting the extent to which its products protect the security of live feeds captured and the personal information that is accessible through those devices.
TRENDnet is a California corporation that, among other things, sells networking devices, such as routers, modems, and IP security cameras that allow users to conduct remote surveillance of their homes and businesses over the Internet.
[6] "Among other things, these compromised live feeds displayed private areas of users' homes and allowed the unauthorized surveillance of infants sleeping in their cribs, young children playing, and adults engaging in typical daily activities.
[7] TRENDnet released a firmware update designed to rectify the software's vulnerability, halted the shipping of new products to market, and spent "substantive resources" notifying all previous customers.
[8] Source:[7] The FTC's Complaint identified four "practices that, taken together, failed to provide reasonable security to prevent unauthorized access to sensitive information, namely the live feeds from the IP cameras.
One commentator noted that the message to all companies developing products for the Internet of Things is that "the FTC is watching and has served notice that it intends to play an active role in enforcing its regulatory authority in that context."
"[12] Over the last decade, the FTC has used the authority to punish "unfair" and "deceptive" trade practices to investigate companies that collect, monitor, or use personal information about consumers.