No sooner had I posted about Texas suing Netflix than the Texas AG’s Office made another announcement. This one is about reaching a settlement with a major electronics company.
Texas Attorney General Ken Paxton has announced a settlement with LG Electronics that will change how the company’s smart TVs handle one of the lesser-known privacy issues in modern households: technology built into many televisions that quietly identifies what is on the screen and reports it back to the manufacturer.
What Is ACR?
The technology at the center of the case is called Automated Content Recognition, or ACR. Think of it as the smart TV equivalent of Shazam, but for everything on your screen. When ACR is on, the television fingerprints whatever is being displayed and identifies the show, movie, advertisement, or game, no matter the source: cable, streaming apps, game consoles, or even connected devices. That data is then used to build viewer profiles, target advertising, and is often shared or sold to third parties.
On many TVs, ACR is on by default, buried several menus deep, and labeled in ways that do not make its purpose obvious to consumers.
What LG Agreed to Do
Under the settlement, LG will:
- Display a pop-up disclosure on its smart TVs explaining how viewing data may be collected and used.
- Post the same disclosure on LG’s website.
- Provide a clear and simple opt-out for viewing data collection.
- Prohibit transfers of viewing data to the Chinese Communist Party in any form.
The headline change is the meaningful, upfront opt-out. ACR programs have generally been allowed under the technical text of a TV’s terms of service, but few users meaningfully consent because they never realize what they are agreeing to.
Why the China Provision Matters
The explicit reference to the Chinese Communist Party is unusual for a consumer privacy case. It reflects the Attorney General’s broader concern that viewing data, combined with information collected from other devices and apps, could end up in the hands of foreign governments. “No electronics company should be collecting consumers’ data and exposing Texans to potential surveillance by the Chinese government,” Paxton said.
A Larger Texas Push
The LG agreement is the second major settlement in Texas’s broader case against five smart TV makers, following an earlier deal with Samsung on similar terms. Cases against Sony, Hisense, and TCL remain pending. Hisense and TCL are based in China, which the office has signaled is a continuing focus in those matters.
The Takeaway
ACR has been an open secret in the consumer electronics industry for years, but most viewers have no idea it is operating in their living rooms. Settlements like this one push one major manufacturer to change its defaults and disclosures, and put the rest of the industry on notice. For consumers, the practical takeaway is simpler: your TV may be watching you back, and now is a good time to check your settings.