Three people were wrongly accused of downloading child abuse images due to a broadband error made by a BT engineer, a tribunal has heard.
The error meant that internet activity linked to the real culprit was instead traced to the address where two men and a woman were staying and had their electronic devices seized in two police raids.
The false accusations, dating back to 2016, have had “extremely distressing and far-reaching” consequences for the three, the Investigative Tribunal (IPT) said.
He ruled that Dyfed-Powys Police had acted lawfully and found that the error was caused by a technical fault rather than police misconduct.
BT has been contacted for comment.
The IPT considers complaints from anyone who believes that they have become a victim of illegal actions of a government agency using secret investigative methods.
Each of the three complainants was granted anonymity by the tribunal and the location of the incident was described only as the “Dyfed-Powys Police area in Wales”, which covers Carmarthenshire, Ceredigion, Pembrokeshire and Powys.
British telecoms firm BT told the tribunal that two wires in a street cabinet leading to both addresses were accidentally crossed.
As a result, the offending IP address was incorrectly assigned to the address of the first male complainant, who was his registered tenant, which he shared with a friend whose girlfriend was also visiting at the time.
The tribunal heard that all three had to tell their employers about the allegations against them.
The innocent woman was told her children could not live with her alone until she was cleared, and the two men were referred to child protective services. The first male applicant was given limited duties at work and the second had his job offer withdrawn.
The three were never charged, and police later identified and prosecuted the real culprit, who lived nearby.
The Tribunal found no compensation or remedy for the three claimants as the force acted within the law and responded accordingly once the error was discovered.
A Dyfed-Powys Police spokesman said: “We recognize the disappointment and pain caused to the plaintiffs in this case and thank them for their dignity, honesty and full cooperation throughout the case.
“We welcome the decision, which recognizes that the errors found were not the fault of the police and that all investigative steps carried out by our officers were lawful, proportionate and necessary.
“Despite the difficult circumstances, we are satisfied that the party responsible for this error has been brought to justice.”