Texas Attorney General Ken Paxton has filed explosive lawsuits against five leading smart TV manufacturers—Samsung, LG, Sony, Hisense, and TCL—accusing them of transforming living room entertainment devices into covert surveillance systems that capture and sell consumers’ viewing habits without meaningful consent. The complaints center on Automated Content Recognition (ACR) technology, which allegedly snaps screenshots of TV screens every 500 milliseconds, tracks content across streaming apps, cable broadcasts, gaming consoles, and Blu-ray players, then transmits this intimate data to corporate servers for targeted advertising profits. Paxton describes ACR as an “invisible digital invader” that endangers privacy by potentially exposing passwords, bank details, and other sensitive information displayed on screen, all while companies bury opt-out options in labyrinthine menus and obtain illusory “consent” through deceptive onboarding flows.
The lawsuits, filed in multiple Texas district courts, allege systematic violations of the Texas Deceptive Trade Practices Act, seeking up to $10,000 per violation and $250,000 for those affecting seniors over 65, alongside immediate restraining orders to halt ACR data collection, sharing, and sales. Texas argues that personalized content recommendations or ads do not justify such invasive monitoring, which far exceeds functional necessities and serves primarily to fuel ad revenue. Manufacturers allegedly guide users to enable ACR during setup with prominent “I Agree to All” buttons, while complete opt-outs demand 15+ clicks scattered across disjointed menus like Settings > Additional Settings > General Privacy > Viewing Information Services > Disable, plus separate toggles for Interest-Based Ads and personalization—creating intentional friction that traps most consumers in perpetual tracking.
Paxton’s office highlights particularly alarming national security risks with Chinese manufacturers Hisense and TCL, whose ties to the People’s Republic of China allegedly expose US viewer data to government access under national security laws. The complaints portray these TVs as “Chinese-sponsored surveillance devices” enabling the Chinese Communist Party to profile judges, elected officials, law enforcement, and critical infrastructure workers for influence operations, corporate espionage, and democratic subversion. Even without physical microphones, ACR’s visual fingerprinting reveals political affiliations, health concerns, financial statuses, and personal relationships through watched content, positioning smart TVs as mass surveillance hubs in millions of American homes.
This legal offensive builds on longstanding privacy alarms about connected TVs, where manufacturers have become central data brokers in digital marketing ecosystems. Advocacy reports document how ACR bundles into initial setups without clear risk disclosures, misleading users who assume entertainment devices enhance viewing rather than commodify it. Paxton’s action escalates beyond complaints, wielding Texas’ consumer protection laws to demand accountability from market dominators like longtime leader Samsung. Companies face not just financial penalties but operational injunctions that could cripple ad-driven business models reliant on behavioral profiling.
The cases expose deeper tensions in the smart device economy, where “free” hardware subsidizes voracious data harvesting. Consumers expect televisions to deliver content, not auction viewing marathons to advertisers or foreign entities. Difficult opt-outs undermine claims of user control, while vague onboarding disclosures fail legal standards for informed consent. Successful litigation could cascade nationally, forcing industry-wide reforms like default-disabled ACR, simplified privacy dashboards, and transparent data flows—potentially reshaping smart TV economics toward genuine user-centric design.
ACR Opt-Out Complexity Across Manufacturers
| Manufacturer | Opt-In Process | Opt-Out Steps | Key Allegations |
|---|---|---|---|
| Samsung | One-click “Agree to All” in onboarding | 15+ clicks across 4+ menus | Deceptive consent, excessive data |
| LG | Bundled in initial setup | Multi-step privacy toggles | Hidden surveillance disclosures |
| Sony | Automatic during Smart Hub activation | Scattered ad personalization settings | Viewing habit monetization |
| Hisense | Pre-enabled tracking services | Buried disable options | CCP data access risks |
| TCL | Integrated in app ecosystem | Complex menu navigation | Foreign influence profiling |
Protecting Privacy on Smart TVs
Consumers can immediately reduce surveillance exposure through targeted actions:
– During initial setup, pause onboarding and search settings for “Viewing Information,” “ACR,” or “Content Recognition” to disable immediately.
– Access privacy menus via Settings > Privacy > Advertising or Interest-Based Ads and toggle all off, then verify no background transmission.
– Use external streaming devices like Roku or Fire TV Stick connected via HDMI, bypassing built-in smart OS entirely.
– Cover the TV camera lens with tape if present, and mute or disable microphones in voice assistant settings.
– Regularly review and revoke app permissions, focusing on streaming services that integrate with ACR ecosystems.
