US authorities have escalated their campaign against networking giant TP-Link, with Texas filing a sweeping lawsuit accusing the company of deceptive marketing, cybersecurity failures and concealing links to China — allegations that could reignite efforts to ban the brand’s routers outright.

Texas Attorney General Ken Paxton has launched legal action in state court against TP-Link Systems claiming the company falsely marketed its products as secure and independent from foreign government control while sourcing critical components from China and maintaining significant operational ties there.

ChannelNews understands that Federal Australian security services are also looking at the potential risks associated with TP Link products.

The lawsuit alleges TP-Link devices effectively operate as “an open window” for Chinese-sponsored cyber threats, including potential access by Chinese intelligence agencies. It seeks statutory damages under Texas deceptive trade practices laws of up to US$10,000 per violation — and up to US$250,000 per violation involving elderly consumers.

The action follows a directive issued last month prohibiting Texas state employees from using TP-Link products. Paxton first began investigating the company in October 2025 and has described the case as the first in a series of actions targeting firms with alleged links to China.

Military Discounts and Base Access Claims

Central to the Texas filing are claims that TP-Link routers were widely purchased by US military personnel, who were offered discounted products. According to state officials, some of these devices were later activatedon US military bases, potentially exposing sensitive networks.

Texas authorities further allege TP-Link attempted to mask its Chinese ties by establishing a US-based entity to sell its products and shifting manufacturing to Vietnam. However, the lawsuit claims that core components — including processors and software — continue to be manufactured in China, with Vietnam functioning largely as an assembly hub.

Federal Scrutiny and ‘Salt Typhoon’ Hack

The state lawsuit lands amid broader federal scrutiny. TP-Link has reportedly been under investigation since 2024 after its devices were linked to the massive “Salt Typhoon” cyberattack, which compromised data across multiple US telecommunications companies.

Despite speculation that the US federal government was preparing to ban TP-Link products in 2025, plans were reportedly paused in early February ahead of a meeting between President Donald Trump and Chinese President Xi Jinping.

The political dimension underscores the geopolitical sensitivity surrounding the case, as Washington continues to confront Beijing over cybersecurity and technology supply chains.

Global Expansion, Structural Separation

Founded in Shenzhen in 1996 by brothers Zhao Jianjun and Zhao Jiaxing, TP-Link grew into one of the world’s largest networking equipment manufacturers, selling products in more than 100 countries. Its name derives from “Twisted Pair Link,” a reference to network cabling technology.

Beyond routers and switches, TP-Link expanded into smart home devices under brands including Tapo and Kasa Smart, Tapo products are widely sold in Australia and other Western markets.

In response to mounting international scrutiny, the company began restructuring in 2022, separating its global business, TP-Link Corporation Group, from TP-LINK Technologies Co., Ltd. in China. By May 2024, executives stated the company’s global headquarters had shifted to Irvine, California, operating under US and Singapore jurisdictions.

TP-Link Systems Inc. (California) and TP-Link Corporation (Singapore) maintain they operate independently from the China-based entity, which continues serving the domestic Chinese market.

Critics Cite Intelligence Laws

However, critics and government officials argue the separation may be more cosmetic than substantive. They point to Chinese intelligence laws that require companies to assist state security agencies when requested — a concern not specific to TP-Link but frequently raised in debates over Chinese technology firms.

Texas officials claim that ongoing reliance on Chinese-made memory, processors and software creates persistent vulnerabilities, regardless of corporate restructuring.

India’s government also issued warnings in 2024 about security vulnerabilities in TP-Link routers, and cybersecurity analysts have alleged that TP-Link devices were exploited in malware campaigns linked to Chinese state-aligned groups.

TP-Link has not publicly responded in detail to the Texas lawsuit but has previously maintained that its global operations are independent and that it adheres to international security standards.

Australia Watching Closely

The developments could have implications beyond the United States. TP-Link routers and smart home products remain widely sold in Australia, where no federal ban has been announced.

With Texas positioning its lawsuit as the first of several state-level actions, pressure is building on US federal authorities to clarify their position. If further legal or regulatory action follows, TP-Link — one of the world’s most ubiquitous router brands — could face sweeping restrictions across Western markets.

For now, the legal battle in Texas may mark the opening salvo in what could become a broader crackdown on Chinese-linked technology embedded in everyday digital infrastructure.