Texas Authorities Sue TV Manufacturers for User Surveillance

Texas Attorney General Ken Paxton has accused five major television manufacturers of illegally collecting user data through Automated Content Recognition (ACR) technology that tracks what device owners watch.

The lawsuits target Sony, Samsung, LG, and Chinese manufacturers Hisense and TCL Technology Group Corporation. The Attorney General's office expressed "serious concerns" regarding the Chinese companies, which must comply with China's National Security Law—potentially granting the Chinese government access to American user data.

Per the lawsuits filed in Texas courts, TV manufacturers use ACR technology to capture screenshots every 500 milliseconds. This technology tracks user activity in real-time and transmits the collected information to company servers without the knowledge or consent of device owners. The manufacturers then sell the gathered information to the highest bidders for targeted advertising purposes.

"Companies, especially those linked to the Chinese Communist Party, have no right to illegally record Americans' devices within their own homes," Paxton stated. "Such actions invade privacy, mislead consumers, and violate the law. The right to privacy will be protected in Texas because owning a television does not mean surrendering personal information to tech giants or foreign adversaries."

History of Smart TV Surveillance

This is far from the first time "smart" TV manufacturers have faced accusations of user surveillance. In 2017, TV manufacturer Vizio (owned by Walmart) paid $2.2 million to settle charges brought by the U.S. Federal Trade Commission and the New Jersey Attorney General's office.

The case revealed that Vizio had collected viewing data from 11 million devices without owners' knowledge or consent through its Smart Interactivity feature. Starting in February 2014, Vizio released "smart" TVs—and remotely updated older models with the necessary software—that recorded detailed information about the content being watched. The devices tracked broadcast and cable TV, plus what users watched on DVDs or through streaming services like Netflix.

Vizio linked the collected data to demographic information such as the user's gender, age, income, and education level, then sold it to third parties for targeted advertising.

Recent Research Findings

In 2024, researchers accused "smart" TV manufacturers, including Samsung and LG, of using ACR technology similar to Shazam. The research team from University College London, the University of California, Davis, and Charles III University of Madrid found that the tracking system operates even when televisions are used as external displays connected via HDMI to other devices.

This means ACR can intercept content from gaming consoles or laptops connected to the TV—monitoring activity far beyond traditional television viewing.

The Texas lawsuits represent a significant escalation in legal action against these practices, particularly given the national security implications raised regarding Chinese-manufactured devices.