Yeah and not limited to insecure transmissions to foreign servers, embedded stock passwords and keys too. If you check out his other reviews, he actually outs them on another product. For example:
Morjava®MJ-SmallK Intelligent Smart Wifi Plug Socket Wireless Switch Timer Wifi Socket Wifi Smart US Plug for iPhone iPad Android Smartphone APP
Oh this is all pretty terrible. To start: the security on this device is a joke. The communication between the app and the device is encrypted with AES, but the encryption key is the same for all devices and is contained within the app - it's "fdsl;mewrjope456fds4fbvfnjwaugfo". This means that it's easy to decrypt any traffic you can see other people send, and also easy to encrypt your own commands. This isn't too much of a problem on your local network (the majority of smart devices will allow anybody on your wifi to control them), but it's awful when it comes to the cloud interface. By default, anyone in the world can send a command to the plug and it'll just perform it. That means anyone can just turn your plugs on and off, and also set the timer. You can avoid the worst of this by setting a password in the app, but there's no sort of rate limiting on the queries so if someone has identified your plug it won't take too long for them to crack your password.
But wait! There's more!
It runs ssh by default and has a default root password (" p9z34c"), so anyone on your network can log into it and run whatever they want on it. Anyone who can see your network traffic can decrypt the commands and extract the password, so don't use the app on any untrusted networks. It downloads app updates and plug firmware updates over http and doesn't do signature validation, so anyone can man in the middle you and get you to flash backdoored firmware onto your plug."
Needless to say, a big thank you to Mr. Garrett for exposing these issues. This is the kind of thing I might buy on a whim and certainly don't have time to figure out what level of security these things are operating at. He's performing a much needed public service.