No Hack, Still Liable, Court Finds ADT

Author: IPVM Team, Published on Jun 20, 2017

Recently, ADT has been in the news for a $16 million settlement for a cyber security vulnerability class action suit.

One of the most important and interesting points behind this settlement is a court order that found ADT could be found liable even if no actual hacks were proven. Many could see this as counterintuitive since what 'damage' had occurred if there was no hack / incident?

In this note, we examine that court order, how the Court reached that conclusion and what impact it might have on manufacturers and providers generally.

********,*** *** **** ** *** **** *** * $** ******* settlement*** * ***** ******** ************* ***** ****** ****.

*** ** *** **** ********* *** *********** ****** ****** **** settlement ** * ***** ***** **** ***** *** ***** ** found ****** **** ** ** ****** ***** **** ******. **** could *** **** ** **************** ***** **** '******' *** ******** if ***** *** ** **** / ********?

** **** ****, ** ******* **** ***** *****, *** *** Court ******* **** ********** *** **** ****** ** ***** **** on ************* *** ********* *********.

[***************]

Executive *******

* ** ********** ******* *********** ** *** ********* *** *** ******* ********** *** ************* ******* ** ****** an ********** ** ** **:

*** ***** ********* **** ********* ************ ******* **** *** **** him * **** ** ******** ******* *** *** ********* ********* of ******** ***** ******* ** *********.

*** ********* / **** ***** ******, **** ******* ** ****** hack, ***** *** ***** ********* **** *** ******** (*** ****) should **** ********* *** ************* *** *** *** ************ ** so.

Industry *********

*** ********** ***** ********** ***** *** **** *** ******** **** about ***** *****:

*** ************ ***** ** ********* ** *** *** ******* **** the ******** ** ***** *** ******* **** ** *** ************* of ******** ******* **** ****** ********* ********** **** ***.

Consumers *** ******** ** ****

** *** **** ****, *** ********** ***** ***** **** ********* would *** ** ******** ** **** ** ***** *****:

**** ********* *** ************ ******* ******** ********* *** ****** **** "[w]hile *********** ********* ***** **** **** ****** *** ** *** possibility ** [* ******], **** ********* ***** *** **** ********* such * ******, *** ***** **** ** ******** **").

Rejects **** ** *******

*** ********* ** *********** ** ***** ** ****** ******** *** the ***** ******** ****, ******* **** * ******** ***** *** have ****** *** ******** ** **** ****:

* ****** **** *** ** ********* ** ** ********. ** is ********* ********* **** * ********** ******** ***** ****** ********** to *** **** **** ***** **** ******** ****** ***** ** easily ** ****** *** ********, **** ****** ****** ********* ** such *******.

General ********** ******** ************

*** ***** ******** *** ******** ***** ******* ********* ********, **** is:

"*** *** *** ******* ***** ******* ** ************** ** ***** is *********** *** *** ******" *** "** ***** ****** *** provide ******** ********** ** ********* ********** ** **** ** ******."

******* ** *********, *** ***** ***** ** *** *** ***** the ******** ****:

**** ******** ** *** * ********** ** *** ********* ******* fact, ****** **** ***'* ******** ******* *** ********** ** *******, jamming, *** ***** **********.

Misleading *********** / ********* ********* **** *******

*** ***** ************ ***** **** ***** ** ******** ************* ****** *********** *** (***)*** ************* ********* ***** ******** *** (****), **** ******** ** ******* ********* ******* ********** *********** *** deceptive **** ** *********.

Industry ******?

**********: **** **** *** ***** ***** ****** *** ********** ********** one's *********.

**** * ******** ***********, ** **** ***** ********. **** ***** suppose ***** ******** ***** *** **** ** ***** ** ** actual ******* / **** / ****** ******. **** ***** ****, as **** ** *** *****'* ******* ******* *-****'* ** *******, *** ******** ** ************* ** ********* ****** ***** ***** and ********* ********* *** *********** ********** ****** ***** *** ******** risks *** ******** ***.

*** ************ *********** ********** ****** ** ***'* ***** **** ($* - $* ******* ****** *******) ******** **** ********. **** ********* that *** ******* *** *** ******* ********** ***** / ******** efforts ** ****** **********. ********, ** ** ******** **** ***'* monthly ******* ******* ***** ******** **** *** ** ********* ****** vs ******** ************* **** **** ******** *** * ***-**** ******.

**** ***********, **** **** *********** **** * ******** ****** (*.*., security ********) *** ***** (*.*., ***** ******** *****) ***** ** used ** ****** ** *** * ******** **** ** *** buyer *** *** ******** **** ******, *** ****** ****** **** they ***** *** **** ****** * ******* ******** ** *** supplier *** ******** ********* / ****** ******** ***** ********. **** is *** **** ** **** **** ********* ****** ********* ********.

Comments (19)

**'* * **** *********** ****, *** ** ************** ** **** any ****** **** *** ****, ***** *** *************, ** ********* to *** ******** **** **** * ********** **** ** *** be ******. **** ******** ***** ** **** *****, *******/********, *** "smart" ******* ** *** ******, ***. **** ** *** ******** they *** * ******** ****** *** ******* **** * ******* providing ********* *** ***** ** *****, *** **** **** ***** that **** ******** ****** *** *********** ******* ** *** ******** was ******* **** * *******.

** ************** ** **** *** ****** **** *** ****, ***** any *************, ** ********* ** *** ******** **** **** * disclosure **** ** *** ** ******

** ************** (***** ** "*** ***** ******** *** ******** ***** ******* ********* ********")*** **** ** ********* ******** ** ***** (*.*., *********** ********), it ***** ** ** ************ *********, *** ****** * ******* 'anything *** ** ******' *********.

* *** **** ** ** ************* ******* ** *** ***** strategy. **** * **** ** **** ********** ******** ** ** country (***** ****) ** ****** ******* ** ******** - **** had ** ** ****** ** *******- **** *** ******* ***** system *** ********** ******* *** *** ** ********* ******. ** offered ******* ** * *** ** ***** *********** ** ** intrusion *** **** ***** *********** ** **** *********** ***** *** never ****.

**** *** ** ** ****** ** *******- **** *** ******* alarm ****** *** ********** ******* *** *** ** ********* ******.

*****, ** **** ****, ** ************* ** **** **** * disclosure / ********* ***** *** **** **** * **********, ***** neither *** *** *** ******** ****** **** *** ****** *** an ********* ******.

* ** *** **** **** *** ******** ********* *********** **** are ** ***** ****, *** ** *** ***, ***** *** a **** ****** ** **** **** *** ***** *** *** laws **** *** ******* / ******* **** *****.

**** ** ****. *** ******** *** ****** ** **** ******** language ** ** ******** *** *** ** **** **** **** for *****.

** **** ** *********** ** **** *** ******* **** **** be ** * ****** ** **** ******.

**** *** ******** * ***** ** *** ****** *****, *** increase ** ********* *** ************ *** *********** **** **** ********. There *** ****** **** ******* ** *** ****** ******, **** considerations *** *** ********** ** *** ****, *******, **** ***** set * ********* **** **** ****** **** ***** ******* ********** to *** ******** ** ********* ***** ********.

*** ** *** *** ********* * **** **, "*** ** really ***********?"

- *** *********** (*** ***** **** ** **** ****)

- *** **********

- ** ***********

- ***-****... ***.

** ** ****** ** ************ ********* *******, *** ********* *** challenges ** ***** ** ** ********.

* ** *** **** ** **-**** *** ****** ****** ** manufactures ***************, ******* * ***** ***** **** *** ************ *** integrators **** ** *** * ***** ****** ** *** ** respond ** ***** ******, *** **** **** * ********* ***********, but **** **** * ********* **********.

* ***** **** ***** ******** ** * ********** ***** ** SSN's **************** ********** ******* **** ****. *** ***** *** ** impressive ********** ** ******** ******** *** ***** ******** *** * consensus **** *** ************** ** ******.

"******" ******** **** **** ** **** *** ***** *** ****** when ** **** *** *** *** ** *** ***** **************. Almost ** **** ** ****** **** ********** ***.

*** ********* ** *********** ** ***** ** ****** ******** *** the ***** ******** ****, ******* **** * ******** ***** *** have ****** *** ******** ** **** ****:

****'* ***** ** **** ** *********** ****** ** *** **** counters *** ******* **** ** ********* ****** **** ** *********** the *******. *** ****** ***** ***** "** ** **** ****** $1M ** ********, *** ****** *** ******* ***** $*.**, **** to **** ***** *** ******* *****". * ***** **** ** a ***** **** ** *** *** ****** ******** ** ** this ****, *** **** *** ******* ****** *** ** ****** to ***** **** **** ** ********.

*** ***** **** *** ******** ***** ***** ******* *********

******* ****** **** * ***** ****** **** ******* ********* *** dahua

***** ******** *** *** ****** ********

***** ******** *** * **** ** **** *** ******** ******** has **** ******* ***** *****

*** *** ***** *** ** ***** **** ***

**** **** ***** ******** *** *******

* ****** ** * **** ** *** *********** ********, ***** the ******** ******* ** ********** *****:

  1. WIRELESS *** ******** ****** ************: Subscriber is responsible for supplying high speed Internet access and or wireless services at Subscriber's premises. RADIUS does not provide Internet service, maintain Internet connection, wireless access or communication pathways, computer, smart phone, electric current connection or supply, or in all cases the remote video server. In consideration of Subscriber making its monthly payments for remote access to the system RADIUS will authorize Subscriber access. RADIUS is not responsible for Subscriber's access to the Internet or any interruption of service or down time of remote access caused by loss of Internet service, radio or cellular or any other mode of communication used by Subscriber to access the system. Subscriber acknowledges that Subscriber's security system can be compromised if the codes or devices used for access are lost or accessed by others and RADIUS shall have no liability for such third party unauthorized access. RADIUS is not responsible for the security or privacy of any wireless network system or router. Wireless systems can be accessed by others, and it is the Subscriber's responsibility to secure access to the system with pass codes and lock out codes. RADIUS is not responsible for access to wireless networks or devices that may not be supported by communication carriers and upgrades to subscriber system will be at subscriber's expense.

** **** ***** ********* ******* ***** ******** ** *** ********* the ******** *******, ** *** ******** ******* ** ********** ** the ******** **** *** ********* *********. * ***** ***** ********* need ** ******* *** ********* **********.

******,

****** *** *******. * ** *** **** **** *** ******* you ****** ** ******* ** **** *****, *.*.:

********** ** *********** *** ********* **** ***** ******** ****** *** or ******** ******** ** **********'* ********....

****** ** *** *********** *** *** ******** ** ******* ** anywireless ******* ****** ** ******. Wireless systems can be accessed by others, and it is the Subscriber's responsibility to secure access to the system with pass codes and lock out codes. [IPVM highlighted]

*** *** * **** **** ** **** ** ** * disclaimer ***** *** ****'* *** ******** *******, *** *** ******** communications ******** / **** ** *** ***** ******. ** *** ADT ****, **** *** ****** **** *** *** ******'* *** wireless *** ********, *** *** *********'* ******** *******.

*****/********? ** * ******* *********?

*******, * ***** ************ ***** **** *** ** **** ** was ******** * ********** ***** **** *****.

* *** ******* * ******* *****. **** * *** ****** to *** ** ** **** *** ******** ********** **** ** ADT *** *********** ********* *** ****** *********** ***** *** ******** or **** ** ******** ** ********* ** *** ***** ****** 9. ** **** ***** *** *** ***** **** ******** ************ than *** ***** ********, ****** *** ** ***** ******* ****** contracts. * *** **** ******* ***** ******* ********* (**** **** users) *** **** **** ******* ** ******* **** *** ***** industry *** ******** ***'* **** ********* ** ***** *** ***** of ********* ******** **** ****:

*. * ******** **** ** ****** *** *** ****** ******** is ****** *** *** ******, **** ****** ** ** ****** by *** ********* *** *********, *********, *********,...

*. **** ** * ***** **************, ** ********** ******* ** a ******** **** ***** ******.

*. ********* ****** ** ****** ********* ** *** *******.

*** *** ******** *** ** *** ****.

********* *** *** ******** **** ** ******* ******* **** *** big **** (******, *****, *********) *** *****.

* ******** **** ** ****** *** *** ****** ******** ** blamed *** *** ******, **** ****** ** ** ****** ** the ********* *** *********, *********, *********,...

**, *** ** ** *****, *** *** / *********** **** is *** ***** * **** ********* ** ***, **** *** title ** **** **** - '** ****, ***** ******'.

* ** *** ********** *** ******* *** *********. * ** emphasizing **** ***** ******* *** *** ****** ** ****** *** case ** **** ****, ******* **** ** ***** ***** / misleading ***********, *** ****** **** * ****.

*** ***** ** **** ** *** ******* ** ******** ***** systems *** *** ********* **** ******* ***** **** **** *** ADT ******* ***** *** ******** ************ *** ** ******* *** manipulate *** ****** ** *** ***** ****** ** ****** ***** an ***** ** ****** * ******** ** ******* *** ****** by **** **** ** *******.

***** ** *** ******* ** *** **** ***** ** *** been **** ************ ****** ** * ********** *****, *** *** some ****** ** ********** ** *** ***.

*******: * **** *** * ***** **** *** **** * significant ****** ** **** ********* ******** ** ******* ******* **** does *** **** **** ***** **** *** **** ****.

* ***** ***** *** ***** *** ** *** ******** *** that ***** **** *** **** ********** ** *** ***** **** not **** *** ***** ****** ** * ****.

******** ** * **** ***** ******** ** ******* *******.

*******: * **** *** * ***** **** *** **** * significant ****** ** **** ********* ******** ** ******* ******* **** does *** **** **** ***** **** *** **** ****.

** *** **** **** ********* ******** **** *** ************ ****** you * ****** ***** **** *** ****** ** **** ***, the ******** ***** ** **** ** *** *** **** ** their ***** ****'* **** ****. *** **** ******** ***** ****** you ** ******, ***. ****'* **** ********* ** **** ******** here.

* **** **** *** *** *** ***** *** **** **** it

****** *** ******** ******** *** ** *** *****

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Bad: Dahua Villa Video Doorbell Tested on Jan 11, 2019
Doorbells are one of the hottest segments in the residential market but Dahua's Villa Video Doorbell is the worst we have tested.   We bought and...
Winter 2019 IP Networking Course on Jan 10, 2019
Today is the last day to register for the Winter 2019 IP Networking course. This is the only networking course designed specifically for video...
Worst Products Tested In Past Year on Jan 09, 2019
IPVM has done over 100 tests in the past year. But which products performed the worst? Which ones should users be most aware of? In this report,...
The Battle For The VSaaS Market Begins 2019 - Alarm.com, Arcules, Eagle Eye, OpenEye, Qumulex, Verkada, More on Jan 02, 2019
2019 will be the year that VSaaS finally becomes a real factor for professional video surveillance. While Video Surveillance as a Service (VSaaS)...
ASCMA / Moni Problems Deepen, Lenders Terminate Support Agreement on Dec 28, 2018
Ascent Capital Group, aka ASCMA, currently branded Brinks Home Security, formerly known as Moni and Monitronics faces a troubling end to a rocky...
Bosch VDOO 2018 Vulnerability on Dec 20, 2018
Security research firm VDOO has discovered a critical vulnerability in Bosch IP cameras. Inside, we cover the available details of this new...
Dahua Lorex White Light Camera Tested on Dec 20, 2018
IP cameras with integrated white light LEDs are a growing trend, led by most notably Hikvision ColorVu. While the Hikvision models are not...
Genetec UL Cybersecurity Certificate (2900-2-3) Examined on Dec 19, 2018
Proving a company is cybersecure has become a major concern for security companies. But how trustworthy are these certificates? Earlier in 2018, a...
Imperial Capital Security Investor Conference 2018 Review - ADT, Resideo, Alarm.com, Arlo, Eagle Eye, ACRE, More on Dec 14, 2018
Imperial Capital Security Investor Conference is an event matching industry executives with financiers that frequently leads to future funding...
Sublethal Camera Gun Examined on Dec 06, 2018
Sublethal is a South African company that manufactures a remotely-controlled, camera-enabled gun called the Boomslang, which is Afrikaans for tree...

Most Recent Industry Reports

Access Control Records Maintenance Guide on Jan 16, 2019
Weeding out old entries, turning off unused credentials, and updating who carries which credentials is as important as to maintaining security as...
UK Fines Security Firms For Illegal Direct Marketing on Jan 16, 2019
Two UK security firms have paid over $200,000 in fines for illegally making hundreds of thousands of calls to people registered on a government...
Access Control Cabling Tutorial on Jan 15, 2019
Access Control is only as reliable as its cables. While this aspect lacks the sexiness of other components, it remains a vital part of every...
Avigilon Favorability Results 2019 on Jan 15, 2019
Since IPVM's 2017 Avigilon favorability results, the company was acquired by Motorola and has shifted from being an aggressive startup to a more...
Gorilla Technology AI Provider, Raises $15 Million, Profiled on Jan 15, 2019
Gorilla Technology is a Taiwanese video analytics manufacturer that recently announced a $15 million investment from SBI Group, saying this...
2019 IP Networking Book Released on Jan 14, 2019
The new IP Networking Book 2019 is a 285 page in-depth guide that teaches you how IT and telecom technologies impact modern security...
Arecont Costar Layoffs on Jan 14, 2019
Arecont Vision, a Costar Company, has laid off more than 10% of their workforce in a move the company described to IPVM as a result of "important...
The False SCMP Story on Hikvision NYC AI on Jan 14, 2019
In the past week, one of Asia's largest publications, the South China Morning Post (SCMP), posted an article about "Chinese [facial recognition]...
WDR Tutorial on Jan 11, 2019
Understanding wide dynamic range (WDR) is critical to capturing high quality images in demanding conditions. However, with no real standards, any...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact