The investigation is the most significant action authorities have taken to address mounting community concern over low-cost smart glasses, which detractors have dubbed "pervert glasses" because their discreet design makes it unclear when they are recording.
In August, Attorney-General Michelle Rowland took the unusual step of asking the privacy regulator to prioritise the issue amid calls for an import ban. The ABC's subsequent testing of the HeyCyan phone app, used by glasses sold on platforms including Kmart, Big W Marketplace and Amazon, uncovered more than a dozen serious security flaws.
Independent testing found that Australians' sensitive data — including email addresses, dates of birth, images and videos — was left exposed to hackers. The devices could be hijacked by nearby attackers via Bluetooth without a password, and data was in some cases being sent to Chinese servers.
Privacy Commissioner Carly Kind said the ABC's reporting raised the prospect that reasonable steps had not been taken to secure user information. Her office also has concerns about possible use of facial recognition technology.
"We will certainly bring to bear the full weight of our powers on the matter," she said.
The regulator made preliminary inquiries with Meta, Google, Kmart and importer BDI Technology over their supply of similar technology, but none is the subject of a formal investigation. Shenzhen Qingcheng was the only company that chose to ignore the regulator completely, Ms Kind said.
"The company did not respond at all to our multiple attempts to obtain information … and did not even acknowledge receipt of our communications," she said. "It does suggest that some of the fundamentals may not be in place, for example, compliance teams that are appropriately staffed."
The formal investigation gives the commissioner power to compel Shenzhen Qingcheng to provide information about its compliance with Australian privacy laws. The next steps if the company continues to ignore the regulator are unclear, but the commissioner has indicated she will use the full force of her powers.