Texas Attorney General Ken Paxton has initiated legal action against five prominent television manufacturers, accusing them of deploying spyware that targets advertisements based on user viewing without permission. Paxton, often criticized for various controversies, is pursuing this case to protect consumer privacy interests.
The lawsuit targets Sony, Samsung, LG, Hisense, and TCL, claiming they covertly capture data on viewer content consumption. The technology in question, known as Automated Content Recognition (ACR), operates by creating brief digital signatures of played media and comparing them against a reference library to identify specifics.
Functioning similarly to audio identification apps but for visual media, ACR's primary aim is to analyze user preferences for delivering personalized ads that boost revenue for sponsors. According to details in Paxton's announcement, this system snapshots the screen every half-second, tracks live viewing patterns, and sends data to the manufacturers secretly, bypassing any user approval.
Promotional materials from LG's advertising division highlight ACR's ability to refine ad delivery based on watched programs, channels, streaming platforms, services, or categories. As it scans all device activity, the tool can detect shopping transactions, membership enrollments, gaming behaviors, and even localize users down to neighborhood levels via postal codes or urban areas.
While televisions typically include an option to disable ACR, the legal complaint against LG alleges that interfaces mislead users into enabling it, while tucking away clear descriptions in convoluted terms that most people overlook or fail to comprehend.
Paxton's statement draws attention to the Chinese origins of Hisense and TCL, raising alarms over potential data collection risks. It points out that China's National Security Law empowers authorities there to access information on American users, intensifying worries about privacy breaches.