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USA: FCC fines Eken $734,872 for false statements on privacy and security
On November 21, 2024, the Federal Communications Commission (FCC) published its Notice of Apparent Liability for Forfeiture in Case FCC 24-122, in which it proposed a fine of $734,872 against Eken Group Limited for violation of the FCC Rules.
Background to the decision
The FCC outlined that Eken, a Hong Kong-based company, provides video doorbell equipment and that news outlets reported that the video doorbells exposed users' home IP addresses and Wi-Fi network names, allowing access to photos and video from household cameras by outside parties.
Findings of the FCC
During its investigation, the FCC's formal Letter of Inquiry to Eken's US-designated agent was sent to an address in Colorado Springs. The US-designated agent is a required point of contact for the FCC when a company holds FCC device certifications. However, the FCC found that the point-of-contact address, which had been listed by Eken as recently as March 2024, had been inactive since 2019. The FCC also noted that it received no response to the Letter of Inquiry sent to Eken.
Accordingly, the FCC found that Eken violated §1.17(a)(2) and 2.911(d)(7) of the FCC Rules by providing material factual information to the FCC regarding its physical address that was incorrect and violated an FCC order by failing to respond to its Letter of Inquiry. The FCC noted that Eken did not have a reasonable basis for believing that the physical US address of its agent was correct and not misleading, and clarified that although Eken stopped marketing and importing devices, it has a continuing obligation to maintain a US-designated agent.
Outcomes
In light of the above, the FCC imposed a fine of $734,872 on Eken for violation of the FCC Rules.
You can read the press release here and the Notice of Apparent Liability here.