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D-Link Systems Secures Victory vs FTC

September 22, 2017

A federal judge has dismissed three counts against D-Link Systems, Inc. from a complaint brought by the Federal Trade Commission (“FTC”) involving baseless charges regarding the company’s data security practices for its consumer routers and IP cameras. Cause of Action Institute (“CoA Institute”) represents D-Link Systems in its defense.

The Court dismissed the FTC’s Section 5 “unfairness” claim due to the “absence of any concrete facts” supporting the FTC’s allegations of potential consumer harm. The Order states:

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 DLS devices.

In March, Michael Pepson, counsel at CoA Institute, argued before the Court that the case should be dismissed due to, among other things, the lack of facts supporting the government’s claims. Pepson argued that the FTC’s complaint includes only vague, unsubstantiated allegations with no mention of an actual breach of any D-Link product, or any harm to a single consumer.

In response to the ruling, Pepson stated: “We are grateful to the Court for taking the time to hear the arguments, carefully study the questions presented, and issue a well-reasoned decision on D-Link Systems’ motion to dismiss. Cause of Action Institute remains proud to represent D-Link Systems in this litigation.”

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