Privacy Advocate Cheers Texas' Actions Against TV Companies as Paxton Secures TRO Against One
Days after suing five TV companies for spying on consumers and recording what they watch, Texas Attorney General Ken Paxton (R) said Wednesday he had secured a temporary restraining order (TRO) against one of them, Hisense, to stop it from collecting personal data. Meanwhile, an attorney said Texas' action highlighted regulation of smart connected devices like TVs, which have become surveillance tools. Another said resulting fines against the companies could be significant.
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Monday’s lawsuits, which also included Sony, Samsung, LG and China-based TCL, accused them of using automated content recognition (ACR) technology, which sends screenshots of TV displays in real time, allowing unlawful collection of personal data (see 2512150048).
The Wednesday TRO prohibits the China-based Hisense from collecting and “using, selling, sharing, disclosing, or transferring ACR data about Texans” for the duration of the case. The suits were filed in state court for violations of the Texas Deceptive Trade Practices Act (DTPA).
“The days of Chinese tech companies spying on Americans’ televisions are over,” said Paxton in a release. "Let this be a notice to every other company wanting to steal Americans’ data illegally that there will be consequence[s] for their unlawful and unethical activity.”
The AG called the use of ACR technology “an egregious and unlawful violation of Texans’ privacy,” and accused the companies of profiting from consumer data. It added that the Chinese Communist Party can access "all" the ACR data.
In an email to us, a Hisense executive said the company is “committed to supporting our customers and respecting their privacy.”
Eric Null, co-director of the privacy & data program at the Center for Democracy & Technology, was “glad" to see Texas act against the companies and urged “other states and the FTC” to do so as well, he told Privacy Daily.
"Smart devices are essentially surveillance devices, and that includes smart TVs,” he said. “TV companies are desperate for data, so much so they have shoved technologies like [ACR] down the throats of unsuspecting and unknowing consumers ... in a quest to serve more ads and increase their revenue, but at the expense of people's privacy in their own homes.”
“People should not have to trade their privacy for watching TV,” Null added.
Dentons privacy lawyer Dalton Cline noted the Texas DTPA carries “a maximum penalty of $10,000 per violation,” which increases to $250,000 if the consumer is 65 or older.
“Given that Texas has already pursued multiple billion (yes, billion with a "b") dollar settlements with large tech companies for violations of Texas law, it's not a stretch to imagine them seeking comparable damages here,” he said in a LinkedIn post.
“Interestingly,” added Cline, Texas didn't cite violations of its comprehensive consumer privacy law, the Texas Data Privacy and Security Act (TDPSA), but stated “explicitly that the complaint will be amended to add claims under the TDPSA if Defendants fail to cure the alleged deficiencies within 30 days.” He added: “Given that the TDPSA permits recovery of up to $7,500 per violation, the potential penalties are astronomical.”
In her newsletter, Red Clover Advisors CEO Jodi Daniels said the case puts "fresh pressure on connected device makers and highlights how everyday household tech is increasingly becoming a frontline issue for privacy enforcement.”