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FTC Approves Settlement with Canadian Lockmaker Over Deceptive Security Claims

We previously posted about the Tapplock, Inc. (“Tapplock”) settlement with the Federal Trade Commission (“FTC”) over allegations that the company violated Section 5 of the FTC Act by falsely claiming that its “smart locks” were secure. Earlier this month, the FTC voted 5-0 to approve the settlement.

Tapplock sells fingerprint-enabled, internet-connected padlocks that interact with a companion mobile app, allowing users to lock and unlock their padlocks when they are within Bluetooth range. The FTC alleged that the locks were not secure and that Tapplock failed to take reasonable precautions or follow industry best practices to protect consumer data. The FTC also alleged that Tapplock falsely claimed that the smart locks were designed to be “unbreakable” and that it took reasonable steps to secure user data.

Under the settlement, Tapplock is required to implement a comprehensive security program and obtain independent security assessments every other year by an assessor that the FTC has the authority to approve. The settlement also prohibits Tapplock from misrepresenting its privacy and security practices.

Copyright © 2020, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume X, Number 148

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About this Author

In today’s digital economy, companies face unprecedented challenges in managing privacy and cybersecurity risks associated with the collection, use and disclosure of personal information about their customers and employees. The complex framework of global legal requirements impacting the collection, use and disclosure of personal information makes it imperative that modern businesses have a sophisticated understanding of the issues if they want to effectively compete in today’s economy.

Hunton Andrews Kurth LLP’s privacy and cybersecurity practice helps companies manage data and...

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