The product was exposed to a hidden camera! Chairman of the A-share company involved: There is no possibility of leaking privacy!

Every reporter: Ye Xiaodan Every editor: Cheng Peng, Zhang Haini

Recently, an article titled “Lego products have major hidden dangers, design defects have been complained by users, and cameras are illegally installed to peep at users’ privacy”. According to previous media reports, some consumers have complained that a camera is secretly hidden in the digital screen of the Lego A9 smart lift platform they purchased, but the product itself does not need a camera.

Image source: Black Cat Complaint

Hidden camera? Is it possible to leak user privacy? On October 27, Lego (SZ300729, stock price 16.97 yuan, market value 3.752 billion yuan) provided the reporter with an updated response statement saying that all the company’s lift tables do not have cameras, and only some lift tables (usually for office use, The four models of smart screens in the table top) have cameras; secondly, the camera does not have the physical possibility of leaking user privacy such as recording room privacy, and is used for heart rate measurement, and the installation angle is about 120 degrees upward from the horizontal line of the desktop height; the above-mentioned 4 models of products have been offline before 12:00 on October 26th.

On the evening of October 27th, Xiang Lehong, chairman of Lege, also “clawed grievances” in his video account, and said that the smart screen and contactless heart rate detection of the smart lift table (commercial desk table) are technological innovations. We will continue to pay attention to and improve the new problems brought about by technological innovation; we apologize for the inconvenience caused to the public by the camera, and will further explain the work. Do a good job in serving customers who return or exchange goods.

Image source: Screenshot of Xiang Lehong’s video account, chairman of Lege Co., Ltd.

The trouble with the built-in camera of the smart screen?

Previously, the user complained that “the product itself does not need to use the camera, and the seller also agrees. Their answer is that the camera is idle. I would like to ask as a new product that has just been launched, why do you want to be ‘kind’ since you don’t have a camera function. Stealing a camera and not telling consumers on the product page? What is the intention?”

There are several issues behind this. Does the product really need to install a camera? What is the purpose of installing the camera? Does the privacy leak that users worry about exist?

In the face of consumer complaints and public opinion fermentation, Lege shares responded twice. On October 19, the reply from Lege shares stated that the built-in camera of the smart screen that comes with the product is used for the contactless heart rate detection function developed by the company, in order to provide users with health value-added services . There are some compatibility problems in the local use of this product. For prudence, this function has been turned off, and the camera does not have the problem of stealing user privacy. If necessary, the company will submit the relevant code of the smart screen to an authoritative third-party platform for inspection and investigation, and promise not to abuse the device to access user privacy.

On October 27, Lege shares further responded, saying that the camera does not have the physical possibility of leaking user privacy such as shooting room privacy, which has been considered at the beginning of the design.

Image source: Screenshot of Xiang Lehong’s video account, chairman of Lege Co., Ltd.

The camera does not extract, upload, or save the user’s face photo. It detects the tiny beating of the blood vessels on the face through a 30-second face scan (not taking pictures or videos), and only filters the noise through the local algorithm to measure the heart rate. The camera is placed at an angle of about 120 degrees upward from the horizontal line of the desktop height. There is no possibility of shooting indoor scenes that are more than 1 meter away from the built-in camera of the smart screen and below a height of 1.5 meters.

Image source: Screenshot of Xiang Lehong’s video account, chairman of Lege Co., Ltd.

At the same time, Lege Co., Ltd. emphasized that currently only 4 models of smart screens in some lifting platforms (usually for office commercial use, desk tables) have cameras, and the total number of devices activated by cameras is about 200. In the privacy policy prompt when users register and use the smart screen, it is clearly informed that there is a camera, and the calculation is local. The user can only use the smart screen after agreeing to the privacy policy of the smart screen. At the same time, the heart rate detection function needs to be activated by the user in the smart screen every time the user uses it.

Image source: Screenshot of Xiang Lehong’s video account, chairman of Lege Co., Ltd.

In the third quarter, deducted non-net profit increased by 82.94% year-on-year

In order to avoid further troubles, Lege shares stated that 4 products with cameras will be offline before 12:00 on October 26, 2022, and there will be no sales in offline stores.

Image source: Screenshot of Xiang Lehong’s video account, chairman of Lege Co., Ltd.

For the above-mentioned four models of lift table products with cameras that have been sold, Lege said that it will provide follow-up services. If the consumer is willing to return it, Lego will refund all the money and bear the shipping cost. For those willing to upgrade the software, the company provides software upgrade services. At the same time, it is reiterated that no matter whether it is returned or not, it will not involve user privacy. Existing products can continue to be used normally.

Lege Co., Ltd. is a well-known cross-border e-commerce enterprise in China. Its main products include intelligent lifting tables, lifting tables and other products. It has transformed from a foreign trade company mainly focusing on OEM in the early years to a cross-border e-commerce enterprise that develops its own brands. In recent years, Lege shares are also vigorously developing the domestic market.

On the evening of October 27, Lege shares disclosed the third quarterly report for 2022. According to the data, the revenue of Lege shares in the third quarter was 763 million yuan, an increase of 8.63% year-on-year, the net profit attributable to shareholders of the listed company was 27.8779 million yuan, a year-on-year decrease of 29.57%, and the net profit attributable to shareholders of the listed company after deduction was 5684.57. 10,000 yuan, a year-on-year increase of 82.94%.

In the first three quarters, the revenue of Lege shares was 2.312 billion yuan, an increase of 10.10% year-on-year; the net profit attributable to shareholders of the listed company was 158 million yuan, an increase of 28.12% year-on-year, and the net profit attributable to shareholders of the listed company after deduction was 65.8831 million yuan , a year-on-year decrease of 31.80%.

Lege shares said that in the first half of 2022, the company’s profit after deductions was affected by adverse factors such as the severe high shipping prices and exchange rate fluctuations. During the reporting period, the aforementioned unfavorable factors that caused the periodic decline in net profit after non-deduction have been significantly improved, mainly as follows: the seaborne price dropped sharply, and the central parity rate of the US dollar against the RMB rose significantly. The company’s profit improved significantly. In the future, the company will further expand overseas sales channels, focus on increasing the development of potential emerging markets, and continuously improve the brand premium capability, product pricing coefficient, and corporate profitability.

Reporter | Ye Xiaodan

Editor | Cheng Peng Zhang Haini Du Bo

Proofreading| He Xiaotao

Cover image source: Video screenshot

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