Texas sues TP-Link alleging Chinese government access to its devices

WASHINGTON, Feb 17 (Reuters) - Texas has sued TP-Link Systems for allegedly marketing its networking devices deceptively and allowing Beijing to access American consumers' devices, the state attorney general said on Tuesday.

"Despite its claims of privacy and security, TP-Link’s products have been used by (China)’s state-sponsored hacking entities to launch multiple cyber-attack operations against the United States," Texas Attorney General Ken Paxton said in a press release announcing the lawsuit.

"With nearly all of its products’ parts imported from China, TP-Link’s deliberate deception towards Texans regarding the nationality, privacy, and security capabilities of its networking devices is not just illegal — it is also a national security threat that enables the secret surveillance and exploitation of Texas consumers," he added.

TP-Link Systems, a California-based router manufacturer spun off from a Chinese firm, said it would "vigorously defend" its reputation, adding that the Chinese government has no form of ownership or control over the company, its products or user data.

It also said claims made by Texas are "without merit and will be proven false," noting that all its core operations and infrastructure are located within the United States, with U.S. user data stored on Amazon Web Services servers.

The Chinese Embassy in Washington did not immediately respond to a request for comment.

The lawsuit follows an investigation launched in October and is one of a series of actions against companies aligned with China, Paxton said. It also comes after Texas barred its employees from using TP-Link last month and after Reuters reported that the Trump administration had paused its own proposed ban on TP-Link sales in the U.S.

Paxton announced last April that he was launching a bid to unseat U.S. Senator John Cornyn, a Texas Republican who is known for pushing tough-on-China policies.