TRENDnet officials did not respond to a request for comment.

While the Internet of Things is still evolving, the concept currently embraces both industrial and consumer products. In a factory, sensors can be used to monitor manufacturing processes, warning that a machine needs maintenance and potentially avoiding a breakdown. At home, so-called smart appliances like refrigerators or thermostats can feed information via the Internet to manufacturers and service providers to keep the products humming.

In a speech last month, Ms. Ramirez noted that such developments required more diligence by consumers and regulators. While many individuals consent to data collection, consumers rarely are consulted about where their personal information goes afterward. The F.T.C. plans to conduct a workshop in November to discuss the issue, with an eye toward drawing up rules that allow for both innovation and the protection of consumers.

Robert R. Belair, who formerly served in the commission’s division of consumer protection and who is now the managing partner of the Washington office of Arnall Golden Gregory, said it was not yet clear whether the Internet of Things “changes the nature of the privacy threat, or just exacerbates the threat in certain ways that require a little more vigilance.”

In detailing the security lapses, the commission said the company transmitted customers’ login information over the Internet in clear, readable text rather than encrypting the data. It also said TRENDnet’s mobile application, which allows customers to control the home camera from a smartphone, did not properly protect users’ credentials. When the company became aware of the flaws, it uploaded a software patch to its Web site and tried to alert customers.

Image A TRENDnet Web-enabled video camera.

As part of the case, TRENDnet agreed to sanctions that include a 20-year security-compliance auditing program. The company also promised not to misrepresent the security of its cameras, the confidentiality of the activity that its devices transmit, or consumers’ ability to control the security of the cameras or their recordings. The agency’s four current commissioners voted unanimously for the sanctions.