VTech

{{Short description|Hong Kongese company of children's electronic learning products}} {{For|the university|Virginia Tech}} {{Update|date=April 2021}} {{Use British English|date=July 2014}} {{Use dmy dates|date=July 2014}} {{Infobox company | name = VTech Holdings Limited | logo = Vtech logo.svg | logo_caption = Logo since 2001 | type = Public | founder = Allan Wong (Chi-Yun)<ref name="Silicon's Search For Youth">{{cite news|title=Silicon's Search For Youth|url=https://www.forbes.com/2011/01/31/toys-allan-wong-vtech-microchip-search-for-youth.html|newspaper=Forbes|date=31 January 2011|page=1}}</ref><ref name="CNN">{{cite news|title=Transcript: Allan Wong, Chairman and Group CEO, VTech|url=http://edition.cnn.com/2006/BUSINESS/10/16/boardroom.wong/|newspaper=CNN|date=18 October 2006}}</ref> Stephen Leung<ref name="History"/> | traded_as = SEHK: [http://www.hkex.com.hk/eng/invest/company/quote_page_e.asp?WidCoID=303&WidCoAbbName=&Month=1&langcode=e 0303] | industry = Electronics industry | founded = {{Start date and age|1976|10}} (as '''Video Technology Limited''') | hq_location = Tai Ping Industrial Centre Block 1, 23rd Floor; 57 Ting Kok Tai Po N.t. Rd., 23/f | hq_location_city = Tai Po, Hong Kong | hq_location_country = | area_served = Worldwide | products = {{ubl|Residential phones|Educational toys|Electronic manufacturing services|Small-medium sized business phones|Hotel phones|Cordless headsets|Integrated access devices|Baby monitors<ref>[http://www.babymonitors.vtech.com/babymonitors Baby monitor]</ref>}} | revenue = {{US$|link=yes}}1,898.9 million (FY2014) | operating_income = | net_income = {{US$|link=yes}}203.3 million (FY2014) | num_employees = Around 30,000 | subsid = {{ubl|Advanced American Telephones|LeapFrog|Snom|Gigaset Communications}} | website = [https://www.vtech.com/ www.vtech.com] }} {{Infobox Chinese | title = VTech Holdings Ltd. | t = 偉易達集團 | s = 伟易达集团 | p = Wěi yì dá jítuán | j = wai5 jik6 daat6 zaap6tyun4 | y = wáih yihk daaht jaahptyùhn | altname = VTech | t2 = 偉易達 | s2 = 伟易达 | p2 = Wěi yì dá | j2 = wai5 jik6 daat6 | y2 = wáih yihk daaht }}

'''VTech Holdings Limited''' (an abbreviation of '''Video Technology Limited''' or simply '''VTech''') is a Hong Kong children's product manufacturer.<ref name="Hong Kong's 40 Richest">{{cite news|title=Hong Kong's 40 Richest|url=https://www.forbes.com/lists/2012/82/hongkong-billionaires-12_Allan-Wong_6HBL.html|newspaper=Forbes|date=5 January 2012}}</ref><ref name="SCMP">{{cite news|title=VTech joins fray with tablets for children|url=https://www.scmp.com/article/737965/vtech-joins-fray-tablets-children|newspaper=South China Morning Post|date=12 February 2011}}</ref><ref name="Maybank">{{cite web|title=Company Research - VTech Holdings|date=24 March 2014|publisher=Maybank Kim Eng|page=7|url=http://research.maybank-ib.com/pdf/documentrg/VTECH_20140324_RC_3966.pdf}}</ref> It is also the world's largest manufacturer of baby monitors and cordless phones.<ref name="Hong Kong's 40 Richest"/><ref name="SCMP"/><ref name="Maybank"/> It was founded in October 1976 by Allan Wong (Chi-Yun)<ref name="Silicon's Search For Youth"/><ref name="CNN"/> and Stephen Leung.<ref name="History"/>

==Name and listing== The company was originally named "Video Technology Limited" in reference to the company's first product, a home video game console. In 1991, it was renamed "VTech Holdings Limited" to reflect a wider portfolio of products.<ref name="History">{{cite web|title = VTech Global Site|url = https://www.vtech.com/en/about-us/history/}}</ref>

The company was first listed in Hong Kong in June 1986 under the name "Video Technology International (Holdings) Limited". It was privatised and delisted from The Stock Exchange of Hong Kong Limited in 1990.<ref>{{Cite web|title = Corporate History {{!}} VTech|url = https://www.vtech.com/en/about-us/history/|website = VTech|access-date = 2015-10-23}}</ref>

VTech obtained a primary listing on the London Stock Exchange in 1991. In 1992, the company relisted on The Stock Exchange of Hong Kong Limited,<ref>{{Cite web|url = http://www.hkex.com.hk/eng/invest/company/profile_page_e.asp?WidCoID=303&WidCoAbbName=&Month=&langcode=e|title = HKEx - Investment Service Centre}}</ref> establishing a dual primary listing with London. In 1993, the company established its American depositary receipt programme.

VTech was delisted voluntarily from the London Stock Exchange on 7 October 2008.<ref>{{cite web|title=Company announcement – Cancellation of Listing|url=http://www.hkexnews.hk/listedco/listconews/sehk/2008/0910/LTN20080910163.pdf|publisher=Hong Kong Stock Exchange}}</ref> It also terminated its American Depositary Receipt programme with effect from 21 January 2011.<ref name="auto">{{Cite web| title=Annual Report 2011 | url=https://www.hkexnews.hk/listedco/listconews/sehk/2011/0617/ltn20110617288.pdf | archive-url=https://web.archive.org/web/20241219173612/https://www.hkexnews.hk/listedco/listconews/sehk/2011/0617/ltn20110617288.pdf | archive-date=2024-12-19}}</ref>

==History== [[File:VTech-Socrates-Set-FL.jpg|top|thumb|right|VTech has developed edutainment consoles since 1988, their first being the Socrates.]] VTech was founded in Hong Kong in October 1976 by two local entrepreneurs, Allan Wong (Chi-Yun)<ref name="Silicon's Search For Youth"/><ref name="CNN"/> and Stephen Leung.<ref name="History"/> When the first single-chip microprocessor, the Intel 4004, became available in the early 1970s, the company saw the potential it offered for portable consumer electronics products. Wong & Leung set up a small factory in To Kwa Wan, with a {{US$|40000}} investment and a staff of 40 people. In the first year, turnover was less than $1 million.<ref name = "History" />

VTech initially focused on developing video games. In 1977, the company created its first home TV game console, a version of Pong. Since only consumers in North America and Europe could afford such items, the company targeted primarily these markets.

The United Kingdom was chosen as the first market for Pong, as Hong Kong and the UK used the same standard for television systems. In 1978, the founders introduced LED games they had developed to buyers from RadioShack in the US, which were sold under the RadioShack brand.

VTech then began to build its own brand. Starting in the early 1980s, a line of electronic games would be manufactured. VTech unveiled its first electronic learning product, called Lesson One, at the New York Toy Fair, in February 1980.<ref name = "History" /> It taught children basic spelling and maths. An exclusive version under the name Computron was offered to Sears, with the product being prominently advertised by Sears, in its catalogue, which was a popular shopping guide.<ref name="Silicon's Search For Youth-2">{{cite news|title=Silicon's Search For Youth|url=https://www.forbes.com/2011/01/31/toys-allan-wong-vtech-microchip-search-for-youth_2.html|newspaper=Forbes|date=31 January 2011|page=2}}</ref><ref>{{cite news|title=Kids' computers through the ages|url=http://www.computerworlduk.com/slideshow/infrastructure/3291946/kids-computers-through-the-ages/6/|newspaper=Computerworld UK|date=18 July 2011}}</ref>

Next, VTech made the video game console CreatiVision. An electronic product with an external projector from French company Ludotronic was adapted by VTech and sold as the VTech ProScreen in 1984, following the release of VTech's Gamate and Variety handheld products the year prior.

VTech then branched out into personal computers, including a series of 8-bit TRS-80 competition computers named the Laser 200, 210, and 310, as well as a series of IBM PC compatibles both beginning in 1983, followed by Apple II compatible computers, beginning in 1985, including a model called Laser 128. After acquiring PC manufacturer Leading Technology of Oregon in 1992,<ref name=shake>{{cite journal | last=Veilleux | first=C. Thomas | date=April 20, 1992 | url=https://link.gale.com/apps/doc/A12153987/GPS?sid=wikipedia | title=While Comdex roars, industry shakes out | journal=HFD | publisher= BridgeTower Media Holding Company | volume=66 | issue=16 | page=110 | via=Gale}}</ref> VTech exited the personal computer market in 1997 due to tight competition.<ref name="Reference for Business">{{cite web|title=VTech Holdings Ltd. – Company Profile, Information, Business Description, History, Background Information on VTech Holdings Ltd.|url=http://www.referenceforbusiness.com/history2/4/VTech-Holdings-Ltd.html|publisher=Reference for Business}}</ref>

In 1985, the United States Federal Communications Commission (FCC) allocated the frequency band 900 MHz to ISM (industrial, scientific, and medical) devices. Taking advantage of this, VTech began development on a cordless telephone, using the 900 MHz band, and in 1991 introduced the world's first fully digital 900 MHz cordless telephone.<ref>{{cite news|title=New Cordless Phones Offer Privacy, Remarkable Clarity|url=https://www.chicagotribune.com/1993/06/04/new-cordless-phones-offer-privacy-remarkable-clarity/|newspaper=Chicago Tribune|date=4 June 1993}}</ref><ref>{{cite news |last1=Benjamin |first1=David |title=Dalvado |url=https://dalvado.com/ |access-date=27 October 2023 |agency=Tech Support}}</ref><ref>{{cite web|title=VTECH phone is no bump analog; this baby's digital.|url=http://www.accessmylibrary.com/article-1G1-12402943/vtech-phone-no-bump.html|date=15 June 1992|author=Michael Rose|publisher=Business Journal-Portland}}</ref>

In 2000, to expand its cordless phone business, VTech acquired the consumer telephone business of Lucent Technologies. The acquisition also gave VTech the exclusive right for 10 years to use the AT&T brand in conjunction with the manufacture and sale of wireline telephones and accessories in the United States and Canada.<ref>{{cite news|title=VTech buys Lucent's consumer phone business for $113m|url=http://www.electronicsweekly.com/Articles/19/01/2000/14318/VTech-buys-Lucent39s-consumer-phone-business-for.htm|newspaper=ElectronicsWeekly.com|date=19 January 2000}}</ref> Although the acquisition increased sales of VTech's telecommunication products by 50%, it led to operating losses and write-offs. The company issued a profit warning in March 2001 and launched a broad restructuring plan.<ref>{{cite news|title=VTech Issues Profit Warning, Plans to Restructure Business|url=http://online.wsj.com/article/SB985617884903534895.djm.html|newspaper=Wall Street Journal Online}}</ref> By the financial year 2002, the company had turned around the business and returned to profitability.<ref>{{cite news|title=VTech reverses losses to post $11.2m profit|url=http://www.totaltele.com/view.aspx?C=0&ID=404064|newspaper=Reuters|date=27 June 2002}}</ref>

Today, VTech's core businesses remain cordless telephones and electronic learning products. Its contract manufacturing services – which manufactures various electronic products on behalf of medium-sized companies, have also become a major source of revenue. The company has diversified geographically, selling to North America, Europe, Asia, Latin America, the Middle East, and Africa.<ref>{{cite web|title=Annual Report 2012|url=http://vtech.com/images/stories/vtech/pdf/reports/AR2012_eng.pdf|publisher=VTech|pages=16–19}}</ref>

==Core businesses== ===Electronic learning products (ELPs)=== VTech was among the pioneers of the ELP industry, beginning in 1980 with a unit designed to teach children basic spelling and mathematics.<ref>{{cite news|title=The VTech phenomenon|url=https://www.forbes.com/global/1998/1019/0115044a.html|newspaper=Forbes|date=19 October 1998}}</ref>

Today VTech makes both individual standalone products and platform products that combine a variety of consoles with different software.<ref name = "Silicon's Search For Youth" />

Its V.Smile TV Learning System, which was launched in 2004, established what the company calls platform products as an important category within its ELPs.<ref>{{cite web|title=V.Smile TV Learning System for kids|date=21 January 2004 |url=http://www.gizmag.com/go/3098/|publisher=Gizmag}}</ref>

In 2005, the ''Smart Start'' category got the first few products under the ''VTech Baby'' brand, including ''V.Smile Baby'' (nothing to do with VTech Baby), it is the first time they used a separate brand for its infant and toddler line since ''Little Smart'' (Lörni in Germany) until 2003.

In 2007, the company picked up the rights from Studio 100 (e.g. Plop the Gnome,<ref name="Plop the Gnome's touch tablet released circa 2007">{{cite web |title=Wayback Machine |url=https://web.archive.org/web/20130402054951/http://www.vtechnl.com/images/handleidingen/61252.jpg |website=www.vtechnl.com |access-date=9 January 2026}}</ref> and Bumba<ref name="picture of the 2009 Bumba telephone toy">{{cite web |title=Wayback Machine |url=https://web.archive.org/web/20130402063444/http://www.vtechnl.com/images/handleidingen/63349.jpg |website=www.vtechnl.com |access-date=9 January 2026}}</ref>) (Netherlands), Babar (France),<ref name="Flyer of Babar toys in France">{{cite web |title=Wayback Machine |url=https://web.archive.org/web/20071019202514/http://www.vtech-jouets.com/fr/images_db/DP-BABAR.pdf |website=web.archive.org}}</ref> and Caillou<ref name="Caillou Book from Spain">{{cite web |title=Wayback Machine |url=https://web.archive.org/web/20100621223926/http://www.vtech.es/fr/images_db/libro%20caillou.jpg |website=web.archive.org |access-date=9 January 2026}}</ref> (Spain)<ref name="Caillou's tablet, it's nearly identical to the Plop one">{{cite web |title=Wayback Machine |url=https://web.archive.org/web/20100621214851/http://www.vtech.es/fr/images_db/Tablero%20de%20Caillou.jpg|website=web.archive.org |access-date=9 January 2026}}</ref>, in this year we released Whiz Kid Learning System and Kidizoom (in 2008 it was broadened the camera to not stop using after the age of six, due to seven and eight year olds still using Kidizooms.)

In 2009, they released another gaming console, the ''V.Baby'', it has been released with the VTech Baby brand in Europe [except Spain which they used the V.Baby logo but uses the normal VTech logo due to V.Baby being short for VTech Baby.], but it is unknown where it was released in Germany or Netherlands.

In 2011, the Winnie the Pooh movie toys are released, including Pooh Learning Phone, Pooh’s Adventure Book, and 2-in-1 Baby Activity Walker, only Pooh’s Adventure Book is a Europe exclusive<ref>{{cite web |title=Introducing the New Winnie the Pooh Collection from VTech |url=https://web.archive.org/web/20130416015730/http://vtech.com/press/press-release/2011/304-introducing-the-new-winnie-the-pooh-collection-from-vtech |website=vtech.com |access-date=7 February 2026 |language=zh-tw}}</ref>. There are more non-Pooh toys released this year including Peek at Me Bunny, Care & Learn Teddy, Grow & Discover Music Studio, and 2-in-1 Discovery Table, the movie Cars 2 has got new releases from VTech that year, Lightning McQueen Digital Camera (Pre-K and up), Team Lightning McQueen Laptop (Pre-K to K), Lightning McQueen Learn & Go (K to 1st Grade), Lightning McQueen Learning Laptop (K to 1st Grade)<ref>{{cite web |title=Driving into a Store Near You; the New Range of Cars 2 Electronic Toys from VTech |url=https://web.archive.org/web/20130413014355/http://vtech.com/press/press-release/2011/316-driving-into-a-store-near-you-the-new-range-of-cars-2-electronic-toys-from-vtech |website=vtech.com |access-date=7 February 2026 |language=zh-cn}}</ref>

In 2013, they introduced the toy plush bear connectable to PC, the Cody the Smart Cub and Cora the Smart Cub, they also introduced InnoTab 2 Baby, a return from baby console market since V.Baby, including a simple Noah's Ark e-book, sing-along nursery rhyme songs, and drawing and coloring activities. In that year, they released the Go! Go! Smart Animals line, with the initial animals are monkey, tiger, lion, hippo, giraffe, elephant, zebra and alligator, and additional 3 are found in Zoo Explorers Playset, Forest Adventure Playset and Tree House Hideaway Playset.

Around 2016, the company picked up rights for Woozle and Pip in the Netherlands.<ref>{{cite web |title=VTech Baby |url=https://www.vtechnl.com/vtechbaby/vtech-baby-woezel-en-pip-mijn-eerste-tablet |website=www.vtechnl.com |access-date=10 January 2026}}</ref>

Latest additions to the platform product range are MobiGo,<ref>{{cite web|title=VTech MobiGo 2 and InnoTab 2 Now Available for Pre-Order |url=https://www.vtech.com/en/press_release/2012/vtech-mobigo-2-and-innotab-2-now-available-for-pre-order/ |publisher=VTech |access-date=2020-07-20 |date=18 Jul 2012}}</ref> InnoTab Max,<ref>{{cite web|title=VTech Welcomes 4th Generation Children's Learning Tablets to Award-Winning InnoTab Family, Including First to Feature Android Learning Content|url=http://www.vtech.com/en/press/press-release/2014/676-vtech-welcomes-4th-generation-childrens-learning-tablets-to-award-winning-innotab-family-including-first-to-feature-android-learning-content|publisher=VTech|date=5 June 2014}}</ref><ref>{{cite news|title=VTech brings teacher-endorsed Android games to its InnoTab Max tablet for kids|url=http://www.gizmag.com/vtech-innotab-max-android/32451/|newspaper=Gizmag|date=8 June 2014}}</ref> Kidizoom Smart Watch<ref>{{cite news|title=There Is Now a 'Smartwatch' for Kids|url=http://mashable.com/2014/02/17/kidi-zoom-smartwatch-for-kids|newspaper=Mashable|date=18 February 2014}}</ref> and InnoTV (StorioTV in France and Germany).<ref>{{Cite web|url = https://www.vtech.com/en/press_release/2015/vtech-introduces-innotv-perfect-first-educational-gaming-system-for-preschoolers-packed-with-educator-supported-learning-games-for-under-us70/|title = VTech Global Site| date=12 October 2015 }}</ref><ref>{{Cite web|url = http://www.vtechkids.com/brands/brand_view/innotv|title = VTech Toys US Site}}</ref>

In 2012, they released 2 new toy lines from the VTech Baby line: ''The World of Cody & Cora'' and ''Lil'Critters'', in 2014, 2 of the most popular franchises ''Go! Go! Smart Wheels'' and ''The World of Cody & Cora'' is released on InnoTab, the former franchise's game is just a collection of minigames, the latter franchise's game is a writing software,<ref>{{cite web |title=New InnoTab Learning Cartridges Feature Popular VTech Toys, Go! Go! Smart Wheels and Cody & Cora The Smart Cub {{!}} VTech |url=https://www.vtech.com/en/press_release/2014/new-innotab-learning-cartridges-feature-popular-vtech-toys-go-go-smart-wheels-and-cody-cora-the-smart-cub/ |website=VTech |publisher=VTech |access-date=4 January 2026 |archive-url=https://web.archive.org/web/20190205150533/https://www.vtech.com/en/press_release/2014/new-innotab-learning-cartridges-feature-popular-vtech-toys-go-go-smart-wheels-and-cody-cora-the-smart-cub/ |archive-date=2019-02-05}}</ref> in 2016, the ''Animal Friends'', mascots of VTech Baby, got redesigned.

===Telecommunication (TEL) products=== {{multiple issues|section=yes|{{more citations needed section|date = April 2024}} {{update|section|inaccurate=yes|date=March 2017}}}} VTech introduced the world's first 900 MHz and 5.8 GHz cordless phones in 1991 and 2002 respectively.{{citation needed|date = April 2024}} As of 2014, the company was the world's largest manufacturer of cordless telephones, according to MZA (as reported by VTech).<ref>{{cite web|title=Annual Report 2014|url=http://www.vtech.com/images/stories/vtech/pdf/reports/AR2014_eng.pdf|publisher=VTech|pages=5}}{{better source needed|date = April 2024}}</ref>{{independent source inline|date = April 2024}}

As of 2014, VTech, in its sale of both AT&T and VTech branded phones and accessories, was the largest player in the industry <ref name="auto"/>{{Clarify|date=September 2019}}, in North America, according to MarketWise Consumer Insights (as reported by VTech).<ref>{{cite web|title=Annual Report 2014|url=http://www.vtech.com/images/stories/vtech/pdf/reports/AR2014_eng.pdf|publisher=VTech|pages=4}}{{better source needed|date = April 2024}}</ref>{{independent source inline|date = April 2024}} Outside North America, as of this date,{{when|date = April 2024}} VTech mainly supplied products to fixed-line telephone operators, brand names, and distributors on an ODM basis. {{citation needed|date = April 2024}}

===Contract manufacturing services (CMS)=== VTech started manufacturing products for other brand names on an original equipment manufacturing (OEM) basis in the 1980s and CMS became one of the company's core businesses in the early 2000s.

VTech has been identified as one of the world's top 50 electronics manufacturing services providers,<ref name="MMI">{{cite web|title=The MMI Top 50 for 2014|url=http://www.mfgmkt.com/mmi-top-50.html|url-status=dead|archive-url=https://web.archive.org/web/20060317151305/http://www.mfgmkt.com/mmi-top-50.html|archive-date=17 March 2006|access-date=8 June 2015|publisher=Manufacturing Market Insider|df=dmy-all}}</ref> providing electronics manufacturing services for medium-sized companies. VTech's CMS has focused on four main product categories: professional audio equipment, switching mode power supplies, wireless products, and solid-state lighting.<ref name="Reports">{{cite web|title = VTech Global Site|url = https://www.vtech.com/en/our-businesses/contract-manufacturing-services/|publisher = VTech}}</ref>

==Controversies==

=== 2012 working conditions controversy === A June 2012 report from the Institute for Global Labour and Human Rights<ref>{{cite web|title=Reports|url=http://www.globallabourrights.org/reports?id=0649|publisher=Institute for Global Labour and Human Rights|date=20 June 2012}}</ref> said the working conditions in the VTech factories in China failed to meet the legal standards and could be described as sweatshops. VTech strongly rejected the allegations in a statement issued on 22 June 2012.<ref>{{cite web|title = Media Statement|url = http://www.prnewswire.com/news-releases/media-statement-from-vtech-159975955.html|publisher = VTech|date = 22 June 2012}}</ref>

=== 2015 data breach === {{Update|section|date=July 2016}} In November 2015, Lorenzo Bicchierai, writing for ''Vice'' magazine's ''Motherboard'', reported that VTech's servers had been compromised and the corporation was victim to a data breach which exposed personal data belonging to 6.3 million individuals, including children, who signed up for or utilized services provided by the company related to several products it manufactures.<ref>{{Cite web|url=https://boingboing.net/2016/02/09/vtech-having-leaked-6-3m-kids-2.html|title=Vtech, having leaked 6.3m kids' data, has a new EULA disclaiming responsibility for the next leak / Boing Boing|website=boingboing.net|date=9 February 2016 |language=en-US|access-date=2018-01-08}}</ref> Bicchierai was contacted by the unnamed attacker in late November, during the week before Thanksgiving, at which point the unnamed individual disclosed information about the security vulnerabilities with the journalist and detailed the breach.<ref name=exposed>{{cite web|author1=Franceschi-Bicchierai, Lorenzo|title=One of the Largest Hacks Yet Exposes Data on Hundreds of Thousands of Kids|url=https://www.vice.com/en/article/one-of-the-largest-hacks-yet-exposes-data-on-hundreds-of-thousands-of-kids/|website=motherboard.vice.com|publisher=Vice magazine|access-date=5 December 2015|date=27 November 2015}}</ref><ref name="Darknet Diaries">{{cite web|last1=Rhysider|first1=Jack|title=Ep 2: The Peculiar Case of the VTech Hacker|url=https://darknetdiaries.com/episode/2/|website=Darknet Diaries|access-date=5 May 2018}}</ref>

Bicchierai then reached out to information security researcher Troy Hunt to examine data provided by the attacker to Bicchierai, and to confirm if the leak was indeed authentic and not an internet hoax. Hunt examined the information and confirmed it appeared to be authentic. Hunt then dissected the data in detail and published the findings on his website. According to Hunt, VTech's servers failed to utilize basic SSL encryption to secure the personal data in transit from the devices to VTech's servers; that VTech stored customer information in unencrypted plaintext, failed to securely hash or salt passwords.<ref name=hunt>{{cite web|author1=Hunt, Troy|title=When children are breached – inside the massive VTech hack|url=http://www.troyhunt.com/2015/11/when-children-are-breached-inside.html|website=troyhunt.com|access-date=5 December 2015|date=28 November 2015}}</ref>

The attack leveraged an SQL injection to gain privileged root access to VTech servers. Once privileged access was acquired, the attacker exfiltrated the data, including some 190 gigabytes of photographs of children and adults, detailed chat logs between parents and children which spanned over the course of years, and voice recordings, all unencrypted and stored in plain text. The attacker shared some 3,832 image files with the journalist for verification purposes, and some redacted photographs were published by the journalist. Commenting on the leak, the unidentified hacker expressed their disgust with being able to so easily obtain access to such a large trove of data, saying: "Frankly, it makes me sick that I was able to get all this stuff. VTech should have the book thrown at them" and explained their rationale for going to the press was because they felt VTech would have ignored their reports and concerns.<ref name=headshot>{{cite web|author1=Franceschi-Bicchierai, Lorenzo|title=Hacker Obtained Children's Headshots and Chatlogs From Toymaker VTech|url=https://www.vice.com/en/article/hacker-obtained-childrens-headshots-and-chatlogs-from-toymaker-vtech/|website=motherboard.vice.com|publisher=Vice magazine|access-date=5 December 2015|date=30 November 2015}}</ref><ref>{{cite web|author1=Whittaker, Zack|title=VTech hack gets worse: Chat logs, kids' photos taken in breach|url=https://www.zdnet.com/article/vtech-hack-gets-worse-kids-photos-chat-logs-also-stolen/|website=ZDNet.com|publisher=Ziff Davis|access-date=5 December 2015|date=30 November 2015}}</ref>

VTech corporate security was unaware their systems had been compromised and the breach was first brought to their attention after being contacted by Bicchierai prior to the publication of the article. Upon notification, the company took a dozen or so websites and services offline.<ref name=exposed/><ref name=headshot/>

In an FAQ published by the company, they explain some 4,854,209 accounts belonging to parents and 6,368,509 profiles belonging to children had been compromised. The company further claims the passwords had been encrypted, which is contrary to reports by the independent security researcher contacted by ''Vice''. The company indicated they were working with unspecified "local authorities".<ref name=hunt/><ref name=FAQ>{{cite web|author1=VTech press release|title=FAQ about Data Breach on VTech Learning Lodge (last update: December 3, 2015, HKT)|url=http://www.vtech.com/en/press_release/2015/faq-about-data-breach-on-vtech-learning-lodge/|website=vtech.com|access-date=5 December 2015|date=3 December 2015}}</ref> VTech subsequently brought in the information security services company FireEye to manage incident response and audit the security of their platform going forward.<ref>{{cite web|author1=Mukherjee, Supantha|author2=Finkle, Jim|title=Digital toymaker VTech hires FireEye to secure systems after hack|url=https://www.reuters.com/article/us-vtech-cyberattack-fireeye-idUSKBN0TM1LE20151203|publisher=Reuters.com|access-date=5 December 2015|date=3 December 2015}}</ref>

Mark Nunnikhoven of Trend Micro criticized the company's handling of the incident and called their FAQ "wishy-washy corporate speak".<ref>{{cite web|author1=Nunnikhoven, Mark|title=Hacked? Don't Respond Like This|url=https://www.linkedin.com/pulse/hacked-dont-response-like-mark-nunnikhoven|website=linkedin.com|access-date=5 December 2015|date=27 November 2015}}</ref>

U.S. Senator Edward Markey and Representative Joe Barton, co-founders of the Bi-Partisan Congressional Privacy Caucus, issued an open letter to the company inquiring as to why and what kind of information belonging to children is stored by VTech and how they use this data, security practices employed to protect that data if children's information is shared or sold to third parties and how the company complies with the Children's Online Privacy Protection Act.<ref>{{cite web|last=Finkle |first=Jim|title=Congress wants VTech details on child data it collects|url=https://www.reuters.com/article/us-vtech-congress-idUSKBN0TL1TJ20151202|publisher=Reuters.com|access-date=5 December 2015|date=2 December 2015}}</ref>

In February 2016, Hunt publicized the fact that VTech had modified its Terms and Conditions for new customers so that the customer acknowledges and agrees that any information transmitted to VTech may be intercepted or later acquired by unauthorized parties.<ref>{{cite news|title=Tech Tent|url=https://www.bbc.co.uk/programmes/p03hlfh5|agency=BBC|date=12 Feb 2016}}</ref><ref>{{cite web|first=Troy |last=Hunt|title=No, VTech cannot simply absolve itself of security responsibility|url=http://www.troyhunt.com/2016/02/no-vtech-cannot-simply-absolve-itself.html|website=troyhunt.com|date=9 Feb 2016}}</ref>

In January 2018, the US Federal Trade Commission fined VTech $650,000 for the breach, around $0.09 per victim.<ref>{{Cite web|url=https://boingboing.net/2018/01/08/normalizing-surveillance-2.html|title=Vtech covered up a leak of data on 6.3m children and their families, then tried to force us not to sue - the FTC just fined them $0.09/kid / Boing Boing|website=boingboing.net|date=8 January 2018 |language=en-US|access-date=2018-01-08}}</ref>

== Notes == {{notelist}}

==References== {{Reflist}}

==External links== {{Commons category|VTech}}

* [https://www.vtech.com/ Official website] * [https://www.vtechkids.com/ VTech Toys website] * [https://www.vtechphones.com/ VTech Phones website]

{{DEFAULTSORT:Vtech}} Category:Companies formerly listed on the London Stock Exchange Category:Companies listed on the Hong Kong Stock Exchange Category:Computer companies of Hong Kong Category:Computer hardware companies Category:Educational software companies Category:Education companies established in 1976 Category:Electronics companies established in 1976 Category:Engineering companies of Hong Kong Category:Hong Kong brands Category:Learning to read Category:Software companies established in 1976 Category:Toy companies of Hong Kong Category:VTech