Texas Attorney General Files Lawsuit Against TP-Link Over Cybersecurity Deception

Texas Attorney General Ken Paxton has filed a lawsuit against TP-Link Systems Inc., the American subsidiary of the Chinese networking equipment maker, alleging the company has deceived consumers about the true origin and security risks of its products. The suit marks the first in what Paxton announced will be a series of lawsuits targeting Chinese companies.

The Allegations

Paxton’s complaint centers on claims that TP-Link has masked its Chinese ownership and control while exposing millions of Americans to cybersecurity vulnerabilities. According to the lawsuit, the company attempts to disguise its Chinese connections by labeling products as “Made in Vietnam,” the country where the devices are assembled.

“TP-Link has created a web of deception that includes shared manufacturing, research, and Chinese state-sponsored benefits,” the suit alleges, with the company’s leadership reportedly “acknowledging accolades and subsidies from the Chinese government.”

The Texas AG’s office claims that TP-Link devices have been linked to state-sponsored cyber attacks and are subject to Chinese data laws that could force customers to share their information. Several federal agencies opened investigations into TP-Link last year over concerns about its potential connection to cyberattacks and firmware vulnerabilities exploited by Chinese hacking groups.

Market Impact and Current Status

TP-Link claims approximately two-thirds of the U.S. home and small business router market, making the company’s alleged security vulnerabilities a significant concern for consumers. Paxton warned that “TP-Link devices are currently for sale at major retailers throughout the State of Texas, hiding vulnerabilities behind misrepresentations of its affiliation and protection.”

The lawsuit invokes the Texas Deceptive Trade Practices Act, which prohibits companies from misrepresenting products, including “causing confusion or misunderstanding as to the source of goods or services.”

TP-Link’s Response

The company disputes the allegations, stating it is an American company and the Chinese government does not exercise any form of ownership or control over them. TP-Link claims the AG’s allegations are “without merit” and will be “proven false.”

Broader State Actions Against Chinese Companies

This lawsuit is part of a broader effort by Texas to distance itself from Chinese technology companies. The Texas government has already prohibited state agencies from using or purchasing TP-Link devices. Governor Greg Abbott has expanded the state’s roster of prohibited companies to include Alibaba, Shein, and TikTok, and Texas created a “hostile foreign adversaries unit” in the state’s Department of Public Safety to address foreign influence campaigns originating from China.

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