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Why Lawmakers Challenged Costco Over Lorex Surveillance Gear in 2023

Two congressional leaders questioned Costco’s 2023 sales of Lorex surveillance equipment, but federal procurement restrictions are not a blanket consumer sales ban.
From TheFinanceBase Team3 min to read
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In October 2023, two congressional leaders questioned Costco about selling Lorex surveillance equipment, citing cybersecurity and human-rights concerns. Their challenge did not establish that Costco broke a law: federal restrictions generally limit government agencies’ procurement of specified equipment, not every consumer purchase of a camera sold under the Lorex name.

What lawmakers said about Costco’s Lorex sales

On October 31, 2023, Representative Chris Smith, chair of the Congressional-Executive Commission on China (CECC), and Senator Jeff Merkley, its cochair, released letters to Costco and ADI asking about continued sales of security products made by Hikvision and Dahua. The CECC described the products as banned for U.S. government use and raised human-rights concerns. The commission’s announcement provides the dated context for the letters.

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In its November 1, 2023 report, TechCrunch said the Costco letter specifically questioned the retailer’s continued sale of Lorex surveillance equipment. The lawmakers cited cybersecurity risks and human-rights concerns, and asked how the sales aligned with Costco’s human-rights commitments. These were concerns raised by the lawmakers, not a court finding that a particular consumer camera spied on its owner.

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The letter also said that competitors Best Buy, Home Depot and Lowe’s had discontinued Lorex products, attributing their decisions to human-rights and ethical-sourcing concerns. That is the lawmakers’ characterization in the letter, as reproduced by TechCrunch; it does not establish those retailers’ current inventory or policies.

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Why Lorex was connected to Dahua

Lorex is a video-surveillance brand. Dahua announced on November 24, 2022, that it had agreed to sell its wholly owned Lorex subsidiary to Taiwan-based Skywatch. Dahua’s announcement describes the proposed sale.

In the 2023 account, TechCrunch reported that Smith and Merkley said Dahua continued supplying component parts for Lorex cameras and other equipment after the announced sale. That was the lawmakers’ stated concern; the available sources do not independently establish the extent of any continuing supply relationship.

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  • 𝗦𝗧𝗔𝗬 𝗖𝗢𝗢𝗟 𝗔𝗡𝗗 𝗤𝗨𝗜𝗘𝗧: A fanless design with a built-in heatsink and wide vents keeps your system silent and efficient, so it fits comfortably in your living room or office.
  • 𝗚𝗘𝗧 𝗔𝗟𝗘𝗥𝗧𝗘𝗗, 𝗢𝗡𝗟𝗬 𝗪𝗜𝗧𝗛 𝗧𝗛𝗘 𝗔𝗟𝗘𝗥𝗧𝗦 𝗧𝗛𝗔𝗧 𝗠𝗔𝗧𝗧𝗘𝗥: Get notifications only when a person or vehicle is detected — no more unnecessary alerts. Advanced AI technology accurately detects people and vehicles, reducing false motion alerts and delivering smarter, more reliable notifications.
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What “government-banned” means—and what it does not

The title’s “government-banned” wording refers to restrictions on government procurement or use, not a demonstrated blanket prohibition on consumers buying every Lorex product. Section 889 generally restricts executive agencies from procuring covered telecommunications and video-surveillance equipment or services produced or provided by specified China-linked entities and their subsidiaries or affiliates.

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The U.S. Government Accountability Office explains the scope and implementation of the restriction in its May 19, 2026 report. GAO also notes that agencies are not prohibited from using covered equipment they acquired before the prohibition took effect. The restriction should therefore not be described as making all retail sales or consumer ownership of Lorex cameras illegal.

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  • 𝗦𝗧𝗔𝗬 𝗖𝗢𝗢𝗟 𝗔𝗡𝗗 𝗤𝗨𝗜𝗘𝗧: A fanless design with a built-in heatsink and wide vents keeps your system silent and efficient, so it fits comfortably in your living room or office.
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What federal agencies reported in 2026

GAO’s 2026 report offers a snapshot of covered equipment at six selected federal agencies. These figures concern those agencies’ networks—not Costco’s sales or consumer camera use.

Finding What GAO reported
Agencies reporting no covered equipment connected to their IT networks Four of the six selected agencies said they had identified none.
Department of Defense DoD reported three instances of covered equipment connected to its network. It said the devices had been blocked from external access while it worked to remove them.

GAO also identified supply-chain visibility challenges for federal agencies, including rebranding and incomplete information about subsidiaries and affiliates. That context helps explain why identifying covered equipment can be difficult; it does not establish that any specific Lorex camera was subject to a particular agency restriction.

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  • 𝗟𝗢𝗖𝗔𝗟 𝗦𝗧𝗢𝗥𝗔𝗚𝗘, 𝗧𝗢𝗧𝗔𝗟 𝗖𝗢𝗡𝗧𝗥𝗢𝗟: Record and access your footage locally without monthly fees thanks to the included 1TB (expandable up to 10TB) of storage. Smart Search makes finding footage easy. Filter recordings by motion type, color, numbers, and more—so you spend less time scrolling and more time focusing on what matters..
  • 𝗦𝗧𝗔𝗬 𝗖𝗢𝗢𝗟 𝗔𝗡𝗗 𝗤𝗨𝗜𝗘𝗧: A fanless design with a built-in heatsink and wide vents keeps your system silent and efficient, so it fits comfortably in your living room or office.
  • 𝗚𝗘𝗧 𝗔𝗟𝗘𝗥𝗧𝗘𝗗, 𝗢𝗡𝗟𝗬 𝗪𝗜𝗧𝗛 𝗧𝗛𝗘 𝗔𝗟𝗘𝗥𝗧𝗦 𝗧𝗛𝗔𝗧 𝗠𝗔𝗧𝗧𝗘𝗥: Get notifications only when a person or vehicle is detected — no more unnecessary alerts. Advanced AI technology accurately detects people and vehicles, reducing false motion alerts and delivering smarter, more reliable notifications.
  • 𝟰𝗞 𝗨𝗟𝗧𝗥𝗔 𝗛𝗗 𝗩𝗜𝗗𝗘𝗢 𝗖𝗟𝗔𝗥𝗜𝗧𝗬: Captures ultra-high-definition 4K (8MP) video with a wide 126° diagonal field of view, providing comprehensive coverage with sharp detail across large areas. Uses advanced low-light imaging with color night vision technology to deliver full-color video in ambient lighting or when the built-in spotlight is enabled, ensuring clear identification in low-light conditions.
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What is known about Costco’s response and current listings

TechCrunch reported on November 1, 2023, that Costco had not returned its request for comment by publication. The available sources do not establish Costco’s eventual response or whether it currently lists Lorex products. The 2023 letter is evidence of a congressional challenge at that time, not proof of Costco’s present-day inventory or a legal determination against the retailer.

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