FTC Says Webcam’s Flaw Put Users’ Lives on Display

The so-called Internet of Things — digitally connected devices like appliances, cars and medical equipment — promises to make life easier for consumers. But regulators are worried that some products may be magnets for hackers.

The Federal Trade Commission took its first action to protect consumers from reckless invasions of privacy, penalizing a company that sells Web-enabled video cameras for lax security practices. According to the FTC, the company, TRENDnet, told customers that its products were “secure,” marketing its cameras for home security and baby monitoring. In fact, the devices were compromised. The commission said a hacker in January 2012 exploited a security flaw and posted links to the live feeds, which “displayed babies asleep in their cribs, young children playing and adults going about their daily lives.”