FTC investigates if TP-Link deceived US consumers about its separation from China, source reveals

Dec 4 (Reuters) - The U.S. Federal Trade Commission is currently investigating whether TP-Link Systems Inc., the router manufacturer, may have misled American consumers by obscuring its ongoing connections to China following its corporate restructuring last year, according to a source familiar with the matter.

The inquiry is focused on whether TP-Link misrepresented itself as an American company and created a false sense of security for customers by downplaying its Chinese affiliations, Bloomberg News reported earlier Thursday. The investigation is in its initial phase, and it remains uncertain whether the FTC will ultimately bring formal charges.

TP-Link co-founder Jeffrey Chao, who now oversees the companys U.S. operations, told Reuters that the company maintains transparency with both the media and government agencies regarding its supply chain, calling claims of concealment "absurd." He also emphasized, in relation to the Chinese Communist Party, that he has never had any connections and that TP-Link adheres to the same standards.

Previously, U.S. authorities launched a criminal antitrust investigation into TP-Links pricing practices and assessed the national security implications of its expanding market presence. Concerns have long existed that Chinese-made networking equipment could potentially be leveraged in cyberattacks targeting U.S. government agencies and businesses.

Author: Zoe Harrison