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Millions Lost? Netgear Alleges TP-Link Hides Chinese Origins
12 Jun
Summary
- Netgear claims TP-Link's statements misled US consumers about its China ties.
- The company alleges tens of millions of dollars in lost sales due to deception.
- TP-Link's Chinese manufacturing and R&D remain central, according to Netgear.
US technology firm Netgear has filed a counterclaim accusing competitor TP-Link of deceiving American consumers and retailers about its ongoing relationship with China. Netgear asserts that TP-Link's misleading statements have unfairly diverted sales, costing Netgear tens of millions of dollars. The company contends that TP-Link, despite claims of spinning off its Chinese business, remains fundamentally a Chinese entity.
Netgear points to TP-Link's sustainability reports, indicating continued R&D and manufacturing from Chinese subsidiaries like Lianzhou International. While TP-Link is shifting some production to Vietnam, Netgear claims over half of TP-Link products imported into the US since 2018 have had a Chinese country of origin. This counters TP-Link's portrayal of being solely a US-based company.
The lawsuit further reiterates long-standing concerns that the Chinese government could potentially use TP-Link products for spying, citing TP-Link's Chinese counterpart being designated as affiliated with the Chinese military. Netgear argues TP-Link's products are subject to China's intelligence and security apparatus, while Netgear itself emphasizes its US origins and manufacturing in allied nations like Indonesia, Vietnam, and Thailand.
Netgear is seeking to block TP-Link from claiming US company status based solely on Vietnamese sourcing and is demanding recovery of TP-Link's profits and damages sustained by Netgear. TP-Link has responded, calling Netgear's claims inaccurate and vowing to vigorously contest them in court, asserting that no government controls the design or production of its routers.
