Just to confirm all of the above, I have a number of Third Reality smart plugs, and they all act as repeaters, even when the switch part is “off.”
This question usually comes up when talking about smart bulbs, which are often put in a socket which is controlled by a physical switch. Some home outlets are also wired to a switch (like, for a floor lamp.) Again, this would be a problem. That’s probably where the confusion comes in.