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So... if a company does all due diligence to perform a recall, but very few people actually send back their five dollar web camera. Is the company pretty much off-the-hook then if that customer's kept webcam gets hacked and is used to brick a nun's IoT pacemaker?

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I would imagine they are off the hook for liability if they issue a recall, and I would also imagine there are going to be probably less than 5% of devices actually returned. How many end users of these products have any idea that they were part of this attack and how many end users will care enough about some cheap chinese electronic device to send it back and wait for a refund/replacement?

Exactly. What percent of users are willing to go through the recall effort, especially for cameras mounted outdoors, and hardwired via PoE? Not to mention shipping (overseas?), and being without security for weeks.

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