Texas Gets Restraining Order Against TV Maker Hisense Over Privacy Allegations
Texas Attorney General Ken Paxton (R) said Wednesday that he had secured a temporary restraining order against TV maker Hisense to stop it from collecting viewers' personal data, including what they watch. The AG sued Hisense and four others earlier this week, alleging use of automated content recognition (ACR) technology, which sends screenshots of TV displays in real time, allowing unlawful collection of personal data (see 2512150048).
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
The restraining order prohibits Hisense from collecting and “using, selling, sharing, disclosing, or transferring ACR data about Texans” for the duration of the case. The suits were filed in state court for violations of the Texas Deceptive Trade Practices Act (DTPA).
“The days of Chinese tech companies spying on Americans’ televisions are over,” said Paxton in a release. "Let this be a notice to every other company wanting to steal Americans’ data illegally that there will be consequences for their unlawful and unethical activity.” In an email to us, a Hisense executive said the company is “committed to supporting our customers and respecting their privacy.”
Eric Null, co-director of the privacy and data program at the Center for Democracy & Technology, urged other states and the FTC to follow Texas' lead. "Smart devices [including smart TVs] are essentially surveillance devices,” he said. “TV companies are desperate for data, so much so [that] they have shoved technologies like [ACR] down the throats of unsuspecting and unknowing consumers ... in a quest to serve more ads and increase their revenue, but at the expense of people's privacy in their own homes.”
Dentons privacy lawyer Dalton Cline noted that the Texas DTPA carries a maximum penalty of $10,000 per violation, which increases to $250,000 if the consumer is 65 or older. “Given that Texas has already pursued multiple billion (yes, billion with a 'b') dollar settlements with large tech companies for violations of Texas law, it's not a stretch to imagine them seeking comparable damages here,” he said in a LinkedIn post.
In her newsletter, Red Clover Advisors CEO Jodi Daniels said the case puts "fresh pressure on connected device makers and highlights how everyday household tech is increasingly becoming a frontline issue for privacy enforcement."