Texas Sues TP-Link Over China Ties, Security Flaws

The lawsuit, filed by Texas Attorney General Ken Paxton, targets TP-Link Systems Inc., a California-based company originally founded in China. According to the legal petition, the company holds a dominant 65 percent share of the American market for network devices, making its routers and smart home products a ubiquitous presence in U.S. households.

Central to the state’s case is the allegation that TP-Link misleads consumers about where its products are made. The devices sold in the American market are stamped with a "Made in Vietnam" sticker, a claim the Attorney General’s office disputes. The lawsuit alleges that despite this labeling, TP-Link’s networking and smart home devices are in fact manufactured and developed by Chinese subsidiaries owned and managed by the company. The petition claims facilities in Vietnam perform only final assembly, while the core manufacturing and supply chains remain dominated by China.

Beyond the origin labeling, the state levels a far more serious charge: that these devices are not secure. The lawsuit accuses TP-Link of deceptively marketing its products as safe despite known firmware vulnerabilities. These flaws, the state alleges, were exploited by Chinese state-sponsored actors, potentially allowing them access to devices inside the homes of American consumers. This connection between the company’s China-based affiliations and the alleged security failures forms a core part of the state’s argument.

This legal action is not an isolated event. According to the reports, this lawsuit is just the first in a coordinated effort by the Texas Office of the Attorney General. It is understood to be the first of several lawsuits intended to be filed this week against what the state describes as "China-aligned companies," representing a significant escalation in using state law to address national security concerns.

The case arrives amid heightened scrutiny of Chinese tech influence. As reported by Bloomberg, U.S. officials are evaluating potential restrictions on TP-Link due to its China links. This legal move by Texas, a state with considerable economic and political clout, signals a new front in that ongoing confrontation, moving the debate from federal policy discussions directly into the courtroom.

For consumers, the lawsuit raises immediate and practical concerns. TP-Link’s routers are a default choice for many, found in homes and small businesses across the country. The state’s allegations, if proven, suggest that a vast network of devices could be implicated, turning a common household gadget into a potential point of vulnerability. The legal filing paints a picture of a product whose supply chain and security are not what they seem, challenging the trust placed in a market leader.

The broader implication is a further fraying of the global supply chain’s credibility. The "Made in Vietnam" label is presented as a marketing reassurance, a signal meant to distance the product from geopolitical tensions. Texas now alleges that this is a veneer, arguing that the heart of the operation—and the associated risks—remains firmly in China. This case will test how much a state can regulate not just a product's final sale, but the entire narrative of its creation and the integrity of its security. The outcome could set a precedent for how other states, and perhaps the nation, handle the complex reality of globally manufactured tech.