FTC examines whether TP-Link misled US consumers about its China split, source says

(Reuters) - The US Federal Trade Commission is examining whether router maker TP-Link Systems Inc. may have deceived consumers by allegedly concealing its connections to China since its restructuring last year, a source familiar with the matter said on Thursday.

Under investigation is whether TP-Link created a false sense of security for its customers by misleadingly describing itself as a U.S. company and hiding its continuing ties to China, Bloomberg News reported earlier on Thursday, adding that the inquiry is in its early stages, and there is no guarantee the FTC will file a complaint.

TP-Link's co-founder Jeffrey Chao, who now runs the U.S. business, said in a statement to Reuters that the company "continues to be transparent with media and government about its supply chain, and it is absurd to suggest we have tried to hide anything." Referencing the Chinese Communist Party, he added, "I do not have, and have never had, connections with the CCP, and I hold TP-Link to the same standard."

U.S. authorities conducted a criminal antitrust investigation into pricing strategies by the California-based firm and the national security risks associated with its growing market share, Bloomberg News reported in April.

There have been widespread concerns in the past that Beijing could exploit Chinese-origin routers and other equipment in cyber attacks on American governments and businesses.