Samsung and the State of Texas have reached a settlement agreement over the alleged unlawful collection of content-viewing information through its smart TVs
As part of the agreement, the TV manufacturer will revise its privacy disclosures to clearly explain its data collection and processing practices to consumers.
Last December, Texas Attorney General Ken Paxton filed a lawsuit against several TV manufacturers, including Samsung, alleging that they use Automated Content Recognition (ACR) technology to collect and process viewing data without first obtaining their express, informed consent.
In January, Texas obtained a short-lived temporary restraining order (TRO) against Samsung to stop the unlawful collection of consumer data in the state, confirming a violation of the Texas Deceptive Trade Practices Act (DTPA).
Although the order was vacated on the following day, the lawsuit remained active.
The allegations against Samsung were that it uses ACR technology to capture screenshots of consumers’ TVs to determine what they’re watching. The South Korean tech giant would use this information for targeted advertising.
In support of the TRO, the Court found that there was “good cause to believe” that Samsung automatically enrolled customers in this system using “dark patterns” that included “over 200 clicks spread across four or more menus for a consumer to read the privacy statements and disclosures.”
In a statement to BleepingComputer, Samsung stated that, while it does not agree that its Viewing Information Services (VIS) system violated any regulations, it has agreed to “make enhancements to further strengthen our privacy disclosures.”
“While we maintain our original television privacy policy and notices followed existing Texas state regulations, as a trusted brand, Samsung is proud to be at the forefront of protecting consumer privacy and security,” stated a spokesperson of Samsung Electronics America.
“The settlement affirms what Samsung has said since this lawsuit was filed – Samsung TVs do not spy on consumers. In fact, Samsung allows you to control your privacy – and change your privacy settings at any time.”
“As part of the agreement, Samsung must halt any collection or processing of ACR viewing data without obtaining Texas consumers’ express consent,” announced Texas AG Ken Paxton.
“Additionally, it compels Samsung to promptly update its smart TVs and implement disclosures and consent screens that are clear and conspicuous to ensure that Texans can make an informed decision regarding whether their data is collected and how it’s used.”
Paxton commended Samsung for agreeing to implement consumer safeguards, while he underlined that others haven’t moved with a similar fervor as of yet.
Smart TV manufacturers, including Sony, LG, Hisense, and TCL Technologies, have not made any changes in response to the lawsuits yet.
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