Vizio Smart TVs Spied on Users; Sold Data to Ad Firms

Smart TV sets that passed on user data without permission might have to display a message suggesting users sue the manufacturers. It's an unusual proposal in a class action lawsuit.

Last year Vizio agreed to pay $3.7 million in fines to settle investigations by the Federal Trade Commission (FTC) and the New Jersey attorney general. The TVs in question used Internet connectivity (providing the TV was connected to Internet access at the home by the user), which then utilized a feature called "Smart Interactivity". Though the feature was enabled by default, users could switch it off but likely wouldn't have done so given the description that it "enables program offers and suggestions."

In fact, the TV set was using a highly creative technique of analyzing the individual pixels in a selection of the screen and then matching it to an industry database of movies and TV shows - the same technology used for spotting illegal uploads on sites like YouTube.

User Behavioral Details Sold To Advertisers

The technique meant the set could figure out what the users were watching, regardless of whether it was on a TV station, a streaming service or a disc. Vizio then sold details of what shows users had watched along with their IP addresses. That meant, for example, that advertisers could use it to deliver customized ads on websites. (Source: ftc.gov)

The fines only covered punishment for breaches of the rules, rather than compensations for users whose privacy was violated. That meant a class action lawsuit inevitably followed.

As is usual in such cases, the plaintiffs and defendants work together to notify everyone who might be part of the class action case - a potential 11 million people in this case. The notification is important as usually people are automatically included unless they opt out. By remaining included, they qualify for a share of any damages but lose the right to bring an individual case.

Message Wording To Be Determined

The law says the notifications have to be sent in the most practical and effective way. Normally these days that means emails, with newspaper ads as a back-up in case anyone is missed out.

However, the two sides have agreed in principle that as the televisions are connected to the Internet, Vizio can make them display an on-screen message detailing the lawsuit. The deadline for the notification has been put back a few weeks to allow time to develop a suitable wording and test that the messages can be delivered. (Source: hollywoodreporter.com)

It's not clear if this will be the only method of notification. That would seem unlikely as some users will have replaced their TV sets since the breaches.

What's Your Opinion?

Should users get compensation for the privacy breach? Is an on-screen message a suitable way to tell people about the class action case? Would the tracking have been acceptable if users knew it was happening and could make an informed decision whether to opt out?