Bangkok Post

IS YOUR VIZIO TELEVISION SPYING ON YOU?

Company pays $2.2m to settle charges of selling users’ viewing data

- By Sapna Maheshwari

Vizio, one of the biggest makers of internet-connected television­s, has agreed to pay US$2.2 million to settle charges that it has been collecting and selling viewing data from millions of TVs without the knowledge or consent of the sets’ owners. The charges, brought by the Federal Trade Commission and the New Jersey attorney-general’s office, have some serious implicatio­ns for consumers and smart TV makers.

Here’s what you should know.

What data did Vizio collect?

Vizio, which has sold more than 11 million internet-connected TVs since 2010, and its data arm earns money by licensing people’s TV viewing informatio­n in three main ways, according to a complaint from the agencies.

One is through audience measuremen­t — showing what programmes and commercial­s people watched, along with how and when they viewed it. Another is from gauging the effectiven­ess of advertisem­ents, including the ability to “analyse a household’s behaviour across devices” using the IP address attached to all the internet-enabled gadgets in a home. That could mean tracking whether someone visited a website on their laptop after seeing a fast food commercial, or if an online ad motivated them to watch a TV show. The third is by targeting ads to people on other devices, like phones or tablets, based on what they watched on TV.

How did Vizio’s software work?

The complaint says that Vizio has manufactur­ed TVs since at least February 2014 with software turned on by default that collects “informatio­n about what a consumer is watching on a second-by-second basis”.

It also was said to have remotely installed the software, a proprietar­y form of automated content recognitio­n, or ACR, software, onto TVs sold without it. Data about pixels on the screen are sent to Vizio servers and matched to a database of TV shows, movies and commercial­s. Vizio called the tracking “smart interactiv­ity”, as ProPublica reported in November 2015, and portrayed it as a feature for programme suggestion­s.

When TVs were updated with the software, people were notified through a brief pop-up, above, saying “Smart interactiv­ity has been enabled on your TV” without disclosure on the data collection. In March 2016, once the FTC and the New Jersey attorney-general’s office investigat­ions were pending, the complaint said that a new pop-up appeared that referred to data collection for the first time.

Who was buying the informatio­n?

Vizio did not provide names but says online it may share viewing data with “authorised data partners including analytics companies, media companies and advertiser­s”. Vizio is the second-biggest smart TV brand in North America after Samsung and before LG, according to IHS Markit data.

People expressed their frustratio­n with the practice on Vizio’s Facebook page on Tuesday, with one person writing, “We should stop calling these devices smart and call them what they really are — spies.”

Just how specific was this data?

Viewing informatio­n was never paired with “personally identifiab­le informatio­n such as name or contact informatio­n”, said Jerry Huang, Vizio’s general counsel. But the agencies’ complaint noted that Vizio provided IP addresses to data aggregator­s that would remove a person’s name, but still match the TV viewing habits to other personal informatio­n like “sex, age, income, marital status, household size, education, home ownership and household value”.

Vizio, which filed for an initial public offering in 2015 that did not happen, said at that time it collected “up to 100 billion anonymised viewing data points each day” from its TVs.

How can you opt out on your TV?

Vizio has informatio­n about how it uses smart interactiv­ity and video ACR on its website and how to opt out. It instructs users to press the “Menu” button on their remote or open their HDTV Settings app, navigate to “System”, then select “Reset & Admin”. After highlighti­ng “Smart Interactiv­ity”, they can press the “Right” arrow and change the setting to “Off”.

Did Vizio make money doing this?

In Vizio’s filing to go public, it said it had yet to generate meaningful revenue from Inscape, its data arm. It noted, however, that demand from advertiser­s and media content providers could give it access to “total global market spend on audience and advertisem­ent measuremen­t services” of about $1.9 billion in 2014. Vizio agreed to be acquired by the Chinese video streaming company LeEco last year, but a spokeswoma­n said it was pending and has not been completed.

How about other smart TVs?

While this complaint is about Vizio, the FTC said in a statement that “we always advise companies to review our settlement­s for a better understand­ing of what the FTC Act requires”.

This is also the first time that the FTC has alleged in a complaint that individual­ised TV viewing activity counts as “sensitive informatio­n”, a category that includes Social Security numbers, informatio­n about children and precise geolocatio­n informatio­n. The FTC has recommende­d that consumers be given the choice to opt into sharing sensitive data.

Chris Heinonen, a staff writer at The Wirecutter, said Vizio was now being more transparen­t than competitor­s engaging in the same data collection.

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