The U.S. District Court for the Northern District of California recently issued a mixed ruling on D-Link Systems’ motion to dismiss in FTC v. D-Link Sys., Inc. D-Link sells routers and Internet protocol (IP) cameras that it markets as having good data security, including “the latest wireless security features to help prevent unauthorized access” and “the best possible encryption.” The Federal Trade Commission (FTC) filed a complaint against D-Link, alleging that the company’s products were in fact subject to “widely known and reasonably foreseeable risks of unauthorized access,” and that, among other things, D-Link failed to deploy “free software, available since at least 2008, to secure users’ mobile app login credentials.” The complaint alleges five claims for deceptive marketing practices and one count for unfair practices under Section 5 of the FTC Act.
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