If you have a Smart TV, you definitely want to know about this lawsuit against Vizio, who collected data on viewers' viewing and use habits and then sold it to marketers, because it goes way beyond what they ever disclosed to television owners.
Starting in 2014, Vizio made TVs that automatically tracked what consumers were watching and transmitted that data back to its servers. Vizio even retrofitted older models by installing its tracking software remotely. All of this, the FTC and AG allege, was done without clearly telling consumers or getting their consent.
What did Vizio know about what was going on in the privacy of consumers’ homes? On a second-by-second basis, Vizio collected a selection of pixels on the screen that it matched to a database of TV, movie, and commercial content. What’s more, Vizio identified viewing data from cable or broadband service providers, set-top boxes, streaming devices, DVD players, and over-the-air broadcasts. Add it all up and Vizio captured as many as 100 billion data points each day from millions of TVs.
What did they do with that data, you ask? Well, my pretties, they sold it. And not only did they sell viewing histories, but they sold more. Much, much more.
Vizio then turned that mountain of data into cash by selling consumers’ viewing histories to advertisers and others. And let’s be clear: We’re not talking about summary information about national viewing trends. According to the complaint, Vizio got personal. The company provided consumers’ IP addresses to data aggregators, who then matched the address with an individual consumer or household. Vizio’s contracts with third parties prohibited the re-identification of consumers and households by name, but allowed a host of other personal details – for example, sex, age, income, marital status, household size, education, and home ownership. And Vizio permitted these companies to track and target its consumers across devices.
Vizio knows they've been caught with their hand in the privacy cookie jar, so to speak. So they are settling the case.
To settle the case, Vizio has agreed to stop unauthorized tracking, to prominently disclose its TV viewing collection practices, and to get consumers’ express consent before collecting and sharing viewing information. In addition, the company must delete most of the data it collected and put a privacy program in place that evaluates Vizio’s practices and its partners. The order also includes a $1.5 million payment to the FTC and an additional civil penalty to New Jersey for a total of $2.2 million.
It's a start, but they definitely got off with a slap on the hand. Let this be a lesson to us all. Technology is great, but be sure to read that privacy fine print before you use it.