Nebraska’s attorney general filed a lawsuit against Lorex, a home-security camera brand sold at Costco and other major U.S. retailers, claiming the company misled families about the privacy of devices marketed for use in bedrooms, nurseries, and other private areas.
The lawsuit highlights Lorex’s undisclosed reliance on a Chinese surveillance company sanctioned by the U.S. government for national security risks and human rights violations.
Attorney General Mike Hilgers announced the case on Sept. 23, stating that Lorex marketed its cameras as “private by design” while concealing that critical parts and software were supplied by Zhejiang Dahua Technology Co., a Chinese manufacturer blacklisted in Washington.
The 39-page complaint alleges that Lorex cameras—including those marketed as baby monitors—use firmware and network infrastructure tied to Dahua products.
The suit states that this dependence introduces security vulnerabilities that could allow hackers, or the Chinese Communist Party (CCP), to access home video and audio streams. Under China’s 2017 National Security Law, Dahua is required to provide data to the CCP.
According to Hilgers, Lorex markets its cameras as safe and secure, suitable for private areas of the home or a child’s bedroom, that it’s “committed to protecting the integrity, privacy, and security of our customers’ information,” and that it takes “every step to ensure your security.”
“These claims were highly misleading, as Lorex’s ongoing relationship with Dahua was wholly inconsistent with a 'commitment' to 'integrity, privacy, and security,” states Hilger’s office.
According to the suit, Costco’s online listing for Lorex products features a disclaimer under “Product Details” that reads: “Lorex products are designed for consumer and business use only and not for US federal governments, federally-funded projects or contractors subject to NDAA.”
“Lorex’s relationship with Dahua is jeopardizing the privacy and security of Nebraska consumers and putting the most intimate areas of the home at risk of exploitation,” Hilgers said. “This kind of deceptive and dangerous conduct will not be tolerated in Nebraska under my watch.”
The U.S. government took action against Dahua in 2019, and the Commerce Department added the company to an export-control blacklist over human-rights abuses in China. In 2022, the Federal Communications Commission (FCC) restricted imports of Dahua products, citing national security concerns.
However, Dahua sold Lorex to Skywatch, a Taiwanese holding company, one day before the FCC order took effect. With the ownership change, Lorex continues to source key components and software from Dahua, and its networks and systems remain linked to Dahua’s infrastructure, according to the lawsuit.
Dahua’s technology has been linked to social surveillance in China, where cameras and police databases are used to identify, detain, and punish minority groups and religious believers.
The lawsuit seeks to prevent Lorex from engaging in deceptive marketing and misleading U.S. consumers, as well as to impose civil penalties and costs under the state’s consumer-protection laws.
Lorex confirmed in an email to NTD that it is aware of the lawsuit. Lorex said the company is “proud to support millions of homeowners and businesses in North America who trust us to provide reliable security solutions that safeguard their families and livelihoods. The trust that our customers place in us defines the Lorex brand.”
“We fully intend to contest the allegations made by the Attorney General, and we are confident that a fair hearing will determine that Lorex has taken the appropriate steps to safeguard customer privacy,” the company said.
NTD reached out to Costco for comment.