Security camera maker TrendNet has settled charges with the US Federal Trade Commission (FTC) that it failed to effectively secure the data captured via its cameras, and exposed the private videos of several users to public viewing on the internet.
The allegations were leveled following hackers' breach of company's Web site and accessed videos from 700 users' live-camera feeds, with many of them being published on the internet.
The US agency's complaint alleges that TrendNet misrepresented its SecurView cameras, which were deployed for use in home security to baby monitoring, as 'secure'.
FTC Chairwoman Edith Ramirez said that the Internet of Things holds great promise for innovative consumer products and services.
"But consumer privacy and security must remain a priority as companies develop more devices that connect to the Internet," Ramirez said.
FTC also claims that the firm, since April 2010, has not implemented a practical security to plan and trial its software, while has not even transmitted user login details in clear, readable text over the internet.
Under the latest settlement terms, the firm cannot misrepresent the security of its cameras or the security, privacy, confidentiality, or integrity of the data transmitted by its cameras or other devices.
TrendNet is also banned from misrepresenting the extent to which a user can control the security of information the cameras or other devices store, capture, access, or transmit.
The security camera maker also requires establishing a complete information security programme aimed at dealing with security risks and notify users about the security issues and the availability of the software update, while also offer free technical support the next two years.