NY AG Settles With Iot Company Over Security Practices

On May 22, 2017, New York Attorney General Eric Schneiderman announced a settlement with Safetech Products LLC ("Safetech") over allegations that the Internet of Things (IoT) company sold insecure wireless door and padlocks.  According to the Attorney General, the settlement marks the first time a state Attorneys General has taken legal action against a wireless security company for failing to protect their consumer's personal and private information.

Safetech offers customers Bluetooth-enabled locks.  According to the Attorney General, Safetech represented to consumers that its products would allow users to protect personal belongings inside their homes by turning doors and closets into secure areas.  However, in 2016, independent researchers found that Safetech's Bluetooth-enabled locks transmitted passwords between the locks and the user's smartphone in plain text without encryption, allowing potential perpetrators to intercept the passwords and open the