Texas sues the five biggest TV makers over claims they secretly track viewing habits

Some TVs are accused of acting as Chinese surveillance tools

by · TechSpot

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What just happened? Texas Attorney General Ken Paxton is suing five tech giants over a data-gathering system found in their TVs. Samsung, LG, Sony, Hisense, and TCL are all accused of making televisions that are mass surveillance systems, unlawfully collecting personal data by secretly recording what consumers watch in their homes.

Paxton's office writes that all five companies have been harvesting users' personal data through Automated Content Recognition (ACR) technology.

The press release calls ACR "an uninvited, invisible digital invader." It adds that the software can capture screenshots of a user's television display every 500 milliseconds, monitor viewing activity in real time, and transmit that information back to the company without the user's knowledge or consent. The information is then sold so other companies can create targeted ads.

Also highlighted in the release is the fact that Hisense and TCL are based in China. The office claims this poses serious concerns about consumer data harvesting and is exacerbated by China's National Security Law, which gives its government the capability to get its hands on US consumer data.

The Hisense and TCL complaints also claim that the Chinese Communist Party may use ACR data from the companies' smart TVs "to influence or compromise public figures in Texas, including judges, elected officials, and law enforcement, and for corporate espionage by surveilling those employed in critical infrastructure, as part of the CCP's long-term plan to destabilize and undermine American democracy."

Texas said that opting out of ACR on Samsung TVs is scattered across four or more separate menus that require over 15 clicks – in contrast to the one-click enrollment option to opt-in during the initial setup process. It's also noted that the I Agree To All checkbox, which gives consent for ACR, is the only one prominently displayed during a device's setup.

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"Companies, especially those connected to the Chinese Communist Party, have no business illegally recording Americans' devices inside their own homes," said Paxton. "This conduct is invasive, deceptive, and unlawful. The fundamental right to privacy will be protected in Texas because owning a television does not mean surrendering your personal information to Big Tech or foreign adversaries."

The lawsuit claims the companies violated the Texas Deceptive Trade Practices Act. It is seeking damages of up to $10,000 for each violation and up to $250,000 for each violation affecting people 65 years or older. It also wants restraining orders prohibiting the collection, sharing, and selling of ACR data while the lawsuits are pending.

The Hisense complaint includes the claim that it "fails to disclose to Texas consumers that under Chinese law, Hisense is required to transfer its collections of Texas consumers' personal data to the People's Republic of China when requested by the PRC."

This isn't the first time a TV company has been in trouble over ACR. In 2015, it was revealed that Vizio smart TVs used the technology to track customer viewing habits and the information was sold to advertisers. As IP addresses were sometimes included, it was possible to associate more personal data with this information, including age, sex, house size/value, income, and more.

A complaint was brought by the Federal Trade Commission, which led to Vizio paying a $2.2 million settlement in 2017. Several separate class-action lawsuits were also launched against the company, which were later consolidated.