In WebService binding scenario, the text of the items is not encoded and HTML code might get executed.
In Server-side Load on Demand binding this is not observed.
The following code can be used as a temporary workaround for WebService binding scenario:
<script type="text/javascript">
Telerik.Web.UI.RadComboBoxItem.prototype._renderItemContent = function (d) {
if (this.get_imageUrl()) {
this._renderImage(d);
}
//https://stackoverflow.com/questions/6234773/can-i-escape-html-special-chars-in-javascript
function escapeHtml(unsafe) {
return unsafe
.replace(/&/g, "&")
.replace(/</g, "<")
.replace(/>/g, ">")
.replace(/"/g, """)
.replace(/'/g, "'");
}
d[d.length] = escapeHtml(this.get_text());
}
</script>