Nebraska Sues China-Linked Camera Company Over Privacy, Security Claims
A Canadian security camera company with ties to China misled consumers about its privacy and security standards, Nebraska Attorney General Mike Hilgers (R) said in a lawsuit filed Tuesday. Hilgers, in an interview with Privacy Daily, discussed how he's using his office's consumer protection authority, as well as the outlook for the state's new privacy law.
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Hilgers is seeking civil penalties against Lorex for violations of the state’s Consumer Protection Act and Uniform Deceptive Trade Practices Act. Nebraska noted that Lorex, a Costco supplier, was previously owned by Dahua, a Chinese surveillance equipment maker. The FCC took action against Dahua in 2022 on national security concerns.
Hilgers highlighted claims posted on the company website saying Lorex is “committed to protecting the integrity, privacy, and security of our customers’ information” and “We take every step to ensure your security.” These claims are misleading, given Lorex continues to use Dahua to source components for its cameras, including baby camera equipment. Nebraska claimed Dahua is required to share information with the Chinese government when sought for “intelligence purposes.”
Lorex didn’t comment Tuesday.
“Lorex’s relationship with Dahua is jeopardizing the privacy and security of Nebraska consumers and putting the most intimate areas of the home at risk of exploitation,” said Hilgers. “This kind of deceptive and dangerous conduct will not be tolerated in Nebraska under my watch.”
Hilgers, in an interview Tuesday, said the core of the complaint centers on the discussion about national security and the expectation that companies be “truthful” about risks of using their products. Hilgers said his office remains “heavily focused” on data privacy issues, particularly false and misleading statements. He noted his data-related action against Temu in June and his UDAP lawsuit against TikTok from May.
“If past is prologue, I think you’d expect us to be pretty active in this space,” he said.
Asked about consideration for the Nebraska Data Privacy Act, enacted in January, Hilgers said the complaint could still be amended but right now, the focus is on misleading statements. It’s too early to fully evaluate the utility of the privacy law, but generally, “having tools like that give us more ability to get remedial measures in place,” he said. The AG’s office can’t seek remedial measures unless it can send letters with credible legal threats, he said: “The more authority that we have gives us more opportunities to get people to do the right thing. So having that law on the books is an important tool for us. How often it will be used, I think we’re at the early stages.”
Hilgers’ lawsuit follows an August subpoena issued to Lorex by Florida Attorney General James Uthmeier (R). Uthmeier cited “foreign spying risks,” the company’s relationship with Dahua and possible misleading statements about privacy and security in his announcement.
Asked about a potential settlement with Nebraska, Hilgers noted his office didn’t issue a civil investigative demand to Lorex: “We’ll see how they respond to the lawsuit. We hope that they’re cooperative.”