Chinese company to face Australian privacy probe over 'pervert' glasses

Australian regulator launches probe into Chinese smart glasses company amid privacy fears In short: Chinese software company Shenzhen Qingcheng is being investigated by the Australian privacy commissioner following an ABC investigation. It revealed last month more than a dozen serious security flaws in the company's app and website used in the glasses for sale in Kmart, Big W Marketplace and Amazon. What next? The privacy commissioner is urging retailers to reconsider selling the product for now. The Australian privacy commissioner has launched a formal investigation into the Chinese software company behind an influx of cheap smart glasses to Australia. It is the most significant action authorities have taken so far to address mounting community concern over the devices nicknamed "pervert glasses" by their detractors. It comes after Attorney-General Michelle Rowland took the unusual step of asking the regulator in August to prioritise the issue amid calls for an import ban. A recent ABC investigation found more than a dozen serious security flaws in the HeyCyan phone app used in smart glasses sold by Kmart, as well as online platforms such as Big W Marketplace and Amazon, among others. Independent testing of the low-cost glasses found Australians' sensitive data including email address, date of birth, images and videos were left exposed to hackers. It also found the devices could be hijacked by nearby attackers without a password using only a Bluetooth connection, and that data was in some cases being sent to Chinese servers. "The ABC's reporting … raised the prospect that there haven't been reasonable steps taken to secure [user] information," Privacy Commissioner Carly Kind said. She said her office had "a range of concerns" about the practices of the company, Shenzhen Qingcheng Future Technology Co (Shenzhen Qingcheng), including about the possible use of facial recognition technology. "We will certainly bring to bear the full weight of our powers on the matter,"she said. Smart glasses, which look like ordinary glasses, allow the wearer to capture images, video and audio with the press of a button or verbal command. It is not always clear when they are in use. The regulator also made preliminary inquiries with Meta, Google, Kmart, and an importer called BDI Technology over their supply of similar tech in Australia, but none of the other companies are the subject of a formal investigation. Shenzhen Qingcheng was the only company which opted to ignore the regulator completely, Ms Kind said. "The company did not respond at all to our multiple attempts to obtain information … [and] did not even acknowledge receipt of our communications," she said. "It does suggest that some of the fundamentals may not be in place, for example, compliance teams that are appropriately staffed. "We would normally expect pretty prompt attention [to] be given to any outreach from the regulator". A formal investigation means the privacy commissioner will now have the power to compel Shenzhen Qingcheng to provide information about how it is complying with Australian laws. If the company continues to ignore the regulator she has the option to seek a court injunction to limit the supply of its products. Shenzhen Qingcheng could theoretically face fines of hundreds of millions or even billions of dollars if ultimately found to have interfered with the privacy of Australians. "The Australian Privacy Act provides for really, really considerable monetary penalties in the form of $50 million per contravention … and that can be applied per individual," Ms Kind said. "That would be what we would be shooting for, should our concerns be borne out". Retailers urged to pull glasses In the meantime the regulator has urged retailers such as Kmart to reconsider selling the product at all. "We have written to the Australian Retail Council and to other retailers putting them on notice that this company is under investigation," Ms Kind said. "Responsible retailers might want to consider whether it is appropriate to continue making these products available." The federal government has decided not to place an import ban on smart glasses at this stage, but was considering a limited ban within public service workplaces. Despite ignoring requests from the privacy commissioner, Shenzhen Qingcheng has responded twice to ABC News. A legal representative for the company said engineers had since fixed security flaws pointed out by the ABC. But cyber security analysts from NSB Cyber and Abstract Shield found that while several improvements had been made, many of the fixes had not worked, or were incomplete, as of October 2. Loading...