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Judge Kills FTC Lawsuit Against D-Link for Flimsy Security (dslreports.com)

Earlier this year, the Federal Trade Commission filed a complaint against network equipment vendor D-Link saying inadequate security in the company's wireless routers and internet cameras left consumers open to hackers and privacy violations. The FTC, in a complaint filed in the Northern District of California charged that "D-Link failed to take reasonable steps to secure its routers and Internet Protocol (IP) cameras, potentially compromising sensitive consumer information, including live video and audio feeds from D-Link IP cameras." For its part, D-Link Systems said it "is aware of the complaint filed by the FTC." Fast forward nine months, a judge has dismissed the FTC's case, claiming that the FTC failed to provide enough specific examples of harm done to consumers, or specific instances when the routers in question were breached. From a report: "The FTC does not identify a single incident where a consumer's financial, medical or other sensitive personal information has been accessed, exposed or misused in any way, or whose IP camera has been compromised by unauthorized parties, or who has suffered any harm or even simple annoyance and inconvenience from the alleged security flaws in the [D-Link] devices," wrote the Judge. "The absence of any concrete facts makes it just as possible that [D-Link]'s devices are not likely to substantially harm consumers, and the FTC cannot rely on wholly conclusory allegations about potential injury to tilt the balance in its favor."

10 of 100 comments (clear)

  1. Re: Sounds about right... by Anonymous Coward · · Score: 5, Funny

    Excellent precedent to cite should I ever get pulled for dangerous driving...

  2. Re:Sounds about right... by dgatwood · · Score: 5, Insightful

    IMO, the judge is wrong in this case. This sort of action shouldn't require showing harm to individuals, because the harm isn't necessarily to the individual device owners. Most of the harm is to the people in aggregate.

    Devices with security holes on the public Internet invariably eventually turn into botnets that attack systems in a distributed fashion, which harms the companies being attacked and the users that get locked out of their accounts. The harm to the owners is negligible, because they lose just a tiny bit of bandwidth. But the harm to society is huge.

    And even in cases where the harm is to the individual owner, the harm could be impossible to prove, because you could never realistically be certain whether a password shared by several websites got stolen from one of those websites or from the unencrypted copy of the password on the user's router. But that doesn't mean that users weren't harmed. In effect, if this judge's opinion is allowed to stand, the government will be unable to prosecute the vast majority of cases in which consumers are harmed en masse by security-related negligence, and that's a bad thing.

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  3. Perhaps the FTC's approach was off. by forkfail · · Score: 3, Insightful

    D-Link PR material consistently claimed the highest security standards.

    Seems like they should have gone after them for fraud and false advertising, given the abysmal lack of security in the systems that were sold for the purpose of making networks secure.

    --
    Check your premises.
  4. Re:Sounds about right... by bws111 · · Score: 3, Insightful

    Lawsuits are for righting wrongs. If you can't show anyone was wronged, then there is nothing to right.

    Protecting people in aggregate is what statutes are for, and neither the FTC nor the judge can create a statute.

    The judge ruled correctly.

  5. Re:Innocent Until Proven Guilty by geekmux · · Score: 3, Insightful

    The Judge made the right call. No evidence means no proof. No proof means they're innocent, even if they're guilty as hell.

    There was plenty of evidence to show that the default security was absolute shit.

    What was lacking here was common fucking sense that confirms when default security is absolute shit, data breaches are usually the end result.

    Validation of that fact is likely strewn across decades of case law, so it was hiding about as well as an elephant herd in the room.

  6. Re:Judge, PROVE your ruling. by ShanghaiBill · · Score: 3

    Since the Judge doesn't believe that the blatant existence of shitty default security can and often will lead to data breaches

    The judge didn't believe that because the plaintiffs didn't provide any evidence that it is true.

    I suggest we force the Judge to install the hardware

    I suggest we require plaintiffs to provide evidence to support their claims.

  7. Re:Sounds about right... by bws111 · · Score: 3, Informative

    Pretty much the first test of any civil lawsuit is whether there was any harm. If you can't demonstrate that, there is no case.

  8. Re:Judge, PROVE your ruling. by chispito · · Score: 3

    Since the Judge doesn't believe that the blatant existence of shitty default security can and often will lead to data breaches, I suggest we force the Judge to install the hardware inside every room of their personal home.

    If the Judge thinks it's so fucking secure, then put your privacy where your ruling is.

    Your comment makes my head hurt. If insufficient evidence of harm was provided, then it's not the judge's job to prove anything.

    --
    The Daddy casts sleep on the Baby. The Baby resists!
  9. Re:Sounds about right... by dgatwood · · Score: 4, Insightful

    Lawsuits are for righting wrongs. If you can't show anyone was wronged, then there is nothing to right.

    But there's ample proof that people were harmed by the Mirai botnet, and much of that harm was the direct result of D-Link routers getting p0wn3d. What they lacked was proof that the owners of the devices were harmed, and the judge incorrectly jumped from "the owners weren't harmed" to "no one was harmed", when in fact that is clearly not the case.

    --

    Check out my sci-fi/humor trilogy at PatriotsBooks.

  10. Re:Sounds about right... by BlueStrat · · Score: 3, Insightful

    Why is he wrong if the burden is on the plaintiff to show actual harm, and the plaintiff could not show actual harm?

    But there was actual harm [wikipedia.org]. The Mirai botnet attacked other computers on the Internet, and as a part of that botnet, D-Link's routers probably did tens of millions of dollars of economic damage to the Internet as a whole. So there was very clearly harm. It just wasn't directed specifically at the owners of the devices. Rather, the owners of the devices were unknowingly being complicit in that harm to others.

    What seems 'off' about this case is that the FTC legal department's lawyers surely understood basic civil law, but yet did not prepare their case with the requisite evidence of harm any such case has to demonstrate.

    It makes me think maybe the FTC just wanted to *look like* they were "taking serious action" here when in reality they wanted the problem to quietly go away because of regulatory-capture/crony-capitalism.

    Strat

    --
    Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.