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FCC Proposes Fine Against Video Doorbell Manufacturer

From the U.S. Federal Communications Commission

For Immediate Release

FCC PROPOSES FINE AGAINST CHINESE VIDEO DOORBELL MANUFACTURER FOR PROVIDING FALSE INFORMATION RELATED TO U.S. EQUIPMENT AUTHORIZATION

FCC Investigation of Eken Regarding Privacy & Data Security Concerns Is Ongoing

Chairwoman Announces Audit of Hundreds of Certifications That Used Same U.S. Designated Agent Information as Eken

WASHINGTON, November 21, 2024—The Federal Communications Commission today proposed a $734,872 fine against Hong Kong, China-based smart home device manufacturer Eken for apparent violations of FCC rules that require the company to designate an agent located in the United States. In addition, the FCC’s Enforcement Bureau is continuing its investigation into privacy and data security issues related to Eken and other Chinese equipment manufacturing companies. FCC Chairwoman Jessica Rosenworcel also announced an audit of hundreds of certifications that used the same U.S. designated agent information as Eken.

Following a news report alleging that Eken’s video doorbells have significant privacy and security vulnerabilities, the FCC’s Enforcement Bureau began an investigation into the company. The investigation also followed calls for such action by U.S. Senator Marco Rubio (letter) and by FCC Commissioner Geoffrey Starks (letters).

Enforcement Bureau investigators sent a formal Letter of Inquiry to the company’s U.S. designated agent—which, under FCC rules, is a required domestic point-of-contact for the agency when it needs to serve or otherwise contact a company that holds FCC device certifications. In this case, investigators discovered that the agent’s address in Colorado Springs, Colorado, submitted by the company as recently as March 4, 2024, was a mailbox that had been inactive since 2019. The FCC also emailed and mailed the individual who had signed Eken’s documents. To date, the FCC has received no response to the Letter of Inquiry. Providing a false address for the designated agent on three FCC applications constitutes three apparent violations of FCC rules resulting in three proposed penalties of the maximum forfeiture amount allowed under the law. When combined with the proposed fine for failing to respond to the Letter of Inquiry, the resulting combined proposed fine equates to $734,872.

The FCC’s investigation into Eken’s equipment remains ongoing. News reports indicated that their video doorbells exposed users’ home IP addresses and Wi-Fi network names and allowed access to photos and videos from household cameras by outside parties. Such remote access to extremely private and personal data was apparently available after a series of very simple steps performed by anyone in proximity to the cameras. This raised serious privacy concerns related to stalking, domestic violence survivor safety, and more.

The FCC has bolstered its rules against insecure equipment and device authorization bodies in recent years. The Commission has:

· Implemented the “rip and replace” program to remove, replace, and dispose of communications equipment and services produced or provided by Huawei Technologies Company or ZTE Corporation.

· Banned equipment authorizations for Chinese telecommunications and video surveillance equipment on the FCC’s Covered List and thus deemed to pose a threat to national security.

· Proposed rules to ensure equipment testing labs and authorization bodies are not influenced by untrustworthy actors.

· Revoked the Section 214 operating authorities of four Chinese state-owned carriers based on recommendations from national security agencies and proposed a process for periodically reassessing existing authorities.

· Restored broadband oversight under Net Neutrality which will allow the FCC to deny companies controlled by hostile foreign governments access to broadband networks.

· Voted to create a voluntary cybersecurity labeling program—the “U.S Cyber Trust Mark”—for wireless consumer Internet of Things (“IoT”) products.

The FCC’s Privacy and Data Protection Task Force was established by the Chairwoman to work on privacy and data protection issues subject to the Commission’s authority under the Communications Act. The FCC also secured “Consumer Privacy Upgrades” covering beneficial data protection, cybersecurity, and consumer privacy terms with all of the largest wireless carriers, including September 2024 settlements with T-Mobile and AT&T, and a July 2024 settlement with Verizon on behalf of TracFone.

The proposed action, formally called a Notice of Apparent Liability for Forfeiture, or NAL, contains only allegations that advise a party on how it has apparently violated the law and may set forth a proposed monetary penalty. The Commission may not impose a greater monetary penalty in this case than the amount proposed in the NAL. Neither the allegations nor the proposed sanctions in the NAL are final Commission actions. The party will be given an opportunity to respond and the Commission will consider the party’s submission of evidence and legal arguments before acting further to resolve the matter.

Action by the Commission November 21, 2024 by Notice of Apparent Liability for Forfeiture (FCC 24-122). Chairwoman Rosenworcel, Commissioners Carr, Starks, and Gomez approving. Commissioner Simington dissenting. Chairwoman Rosenworcel and Commissioner Starks issuing separate statements.

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This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC, 515 F.2d 385 (D.C. Cir. 1974).