US Lawmakers Criticize Costco for Continuing to Sell Banned Surveillance Equipment Linked to Chinese Human Rights Abuses

Costco under fire for violating its own code of conduct by marketing Lorex surveillance equipment, known for cybersecurity vulnerabilities and links to Uyghur genocide; lawmakers prompt investigation into sale compliance with US sanctions.

• US Representatives Christopher Smith (R-NJ) and Jeff Merkley (D-OR) have issued a letter to Costco criticizing the retailer's decision to continue selling Lorex surveillance equipment, which are known for cybersecurity vulnerabilities and links to Uyghur genocide in China.
• Despite Costco's Code of Conduct prohibiting human rights abuses in its supply chain, and numerous other retailers removing Lorex products from their shelves, Costco continues to market these products.
• Lorex, until recently a subsidiary of China-based company Dahua, has been placed on the US Government's 'Entity List' due to its role in providing surveillance equipment aiding in human rights abuses and profiteering from technology linked to China’s suppression of ethnic minorities.
• While Dahua has sold Lorex to Taiwanese company Skywatch, lawmakers assert that this does not change the security risks posed to US companies and consumers. Dahua still supplies all the component parts for the Lorex cameras and other surveillance equipment.
• Lawmakers are currently seeking explanations from Costco as to how the sale of Lorex equipment complies with US sanctions and its own human rights commitments, as well as asking for information on Costco’s sale of seafood from Chinese companies allegedly using forced labor.

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