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United States District Court for the Northern District of California
September 19, 2017, Decided; September 19, 2017, Filed
Case No. 3:17-cv-00039-JD
ORDER RE MOTION TO DISMISS
Re: Dkt. No. 25
In this enforcement action under Section 5(a) and Section 13(b) of the Federal Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 45(a) and 53(b), the Federal Trade Commission ("FTC") alleges that defendant D-Link Systems ("DLS") engaged in unfair and deceptive practices in the marketing and sales of routers and Internet-protocol ("IP") cameras. Dkt. No. 1. The FTC also sued D-Link Corporation, DLS's Taiwanese parent, but the parties agreed to dismiss it without prejudice. Dkt. No. 75. DLS moves to dismiss the complaint on a variety of grounds. Dkt. No. 25. The [*2] motion is granted in part and denied in part.
As alleged in the complaint, DLS sells router and IP camera products to consumers in the United States. Dkt. No. 1 ¶ 7. DLS marketed these products as providing good data security because they featured "the latest wireless security features to help prevent unauthorized access" and "the best possible encryption" protections, among other safeguards. See id. ¶¶ 21-24. The FTC alleges that, in fact, DLS failed to protect its products from "widely known and reasonably foreseeable risks of unauthorized access" by not providing "easily preventable" measures against "'hard-coded' user credentials and other backdoors," not maintaining the confidentiality of the private key DLS used with consumers to validate software updates, and not deploying "free software, available since at least 2008, to secure users' mobile app login credentials." Id. ¶ 15. As a consequence, "consumers' sensitive personal information and local networks" are at significant risk of being accessed by unauthorized agents. Id. ¶¶ 16-18. DLS's practices constitute, in the FTC's view, unfair and deceptive conduct under the FTC Act.
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
2017 U.S. Dist. LEXIS 152319 *; 2017-2 Trade Cas. (CCH) P80,134; 2017 WL 4150873
FEDERAL TRADE COMMISSION, Plaintiff, v. D-LINK SYSTEMS, INC., Defendant.
Subsequent History: Summary judgment denied by, Motion denied by FTC v. D-Link Sys., Inc., 2018 U.S. Dist. LEXIS 199023 (N.D. Cal., Nov. 5, 2018)
consumers, unfairness, deceptive, allegations, practices, camera, routers, Counts, substantial injury, motion to dismiss, misleading, products, flaws, user