Texas Attorney General Ken Paxton filed lawsuits against Samsung, LG, Sony, Hisense, and TCL yesterday, claiming their smart TVs secretly monitor viewers through software that captures screen images twice per second.
Key takeaways:
- ACR software captures television screenshots every 500 milliseconds and transmits viewing habits to manufacturers
- Companies face fines up to $10,000 per violation, or $250,000 when affecting seniors
- Opting out requires navigating through 15+ menu clicks across multiple settings screens
The legal action targets Automated Content Recognition technology that collects viewing data without proper user permission.
The attorney general’s office describes ACR as an “uninvited, invisible digital invader” that monitors everything displayed on screen—from streaming content to gaming consoles and Blu-ray players. This harvested information builds consumer profiles that manufacturers sell to advertisers for profit.
“Companies, especially those connected to the Chinese Communist Party, have no business illegally recording Americans’ devices inside their own homes,” Paxton stated. “This conduct is invasive, deceptive, and unlawful.”
The lawsuits accuse manufacturers of violating the Texas Deceptive Trade Practices Act through inadequate disclosure and deceptive consent practices. According to court filings, these televisions function as “a mass surveillance system sitting in millions of American living rooms” rather than simple entertainment devices.
During initial television setup, Samsung presents consumers with a single prominent button labeled “I Agree to all” after displaying four separate policy notices. Actually disabling the tracking requires locating and adjusting settings buried across different menu sections—a process involving at least 15 clicks through non-intuitive paths.
The complaint against Samsung details this maze: users must navigate Settings, Additional Settings, General Privacy, Terms & Privacy, Viewing Information Services, then finally select “Disable.” Additional toggles exist for Interest-Based Ads, Ad Personalization, and Privacy Choices scattered throughout the interface.
Texas argues this creates meaningless consent because privacy options “are scattered across four or more separate menus.” Meanwhile, manufacturers offer one-click enrollment during startup.
“Most consumers do not know, nor have any reason to suspect, that Samsung Smart TVs are capturing in real-time the audio and visuals displayed on the screen and using the information to profile them for advertisers,” the Samsung lawsuit states.
The attorney general contends that personalized content and targeted advertising don’t justify this data collection. Manufacturers demonstrate an “insatiable appetite for consumer data far exceeds what is reasonably necessary,” with the “invasive data harvesting” serving only to boost advertisement revenue rather than meeting genuine consumer needs.
Special attention targets Hisense and TCL due to their Chinese ownership. The Hisense complaint specifically alleges the company fails to disclose that Chinese law requires transferring collected consumer data to the People’s Republic of China upon government request.
Both Chinese manufacturer lawsuits claim the Communist Party could exploit ACR data “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.”
Paxton’s press release emphasized concerns about “China’s National Security Law, which gives its government the capability to get its hands on US consumer data.” The lawsuits describe Hisense and TCL televisions as “effectively Chinese-sponsored surveillance devices, recording the viewing habits of Texans at every turn.”
The Center for Digital Democracy raised similar concerns in a report last year, noting that “viewer surveillance is now built directly into the television set, making manufacturers central players in data collection, monitoring, and digital marketing.”
That organization found ACR systems bundled into new televisions during initial setup without fully explaining “its extensive role in monitoring and sharing viewer actions.” Consequently, most consumers remain unaware of the risks involved when activating these features.
Texas seeks restraining orders to halt collection, sharing, and selling of ACR data during litigation. The state also pursues monetary damages, with penalties potentially reaching $10,000 per violation—escalating to $250,000 when violations affect residents aged 65 or older.
Sony, LG, and Hisense responded to media inquiries by declining comment on pending litigation. Samsung and TCL have not yet issued statements.
The complaints expose sensitive information at risk, including passwords, bank details, and other personal data visible on television screens. ACR technology captures whatever appears on display, regardless of whether content comes from streaming services, cable television, or connected devices.
Privacy advocates have warned about smart TV tracking for years. Recent guides explaining how to escape smart TV advertisements and monitoring demonstrate growing consumer awareness of these practices.
These lawsuits arrive as television manufacturers increasingly rely on advertising revenue and data sales to supplement hardware profits. Industry observers note that modern televisions often sell at thin margins, with companies recouping costs through post-purchase data monetization.
The legal action spans multiple Texas district courts, with each complaint seeking both injunctive relief and substantial financial penalties. Court proceedings will determine whether manufacturers adequately informed consumers about surveillance capabilities and obtained legitimate consent for data collection.
Written by Alius Noreika
