When buyers power on a Samsung smart TV for the first time, they are required to move through a multi-page setup sequence before arriving at a consent screen labeled Smart Hub Terms & Conditions, the lawsuit said. “Upon finally reaching the consent screen, consumers are presented with four notices: Terms & Conditions: Dispute Resolution Agreement, Smart Hub U.S. Policy Notice, Viewing Information Services, and Interest-Based Advertisements Service U.S. Privacy Notice, with only one button prominently displayed: I Agree to all.”
Allegations of deceptive trade practices
The lawsuit contends it is unreasonable to expect consumers to realize Samsung TVs contain surveillance features. “Most consumers do not know, nor have any reason to suspect, that Samsung Smart TVs are capturing in real-time the audio and visuals displayed on the screen and using the information to profile them for advertisers,” it said.
Paxton asserts that TV makers violated the state’s Deceptive Trade Practices Act by misrepresenting how personal information is collected and by failing to disclose the use of ACR technology. The suit against Hisense also alleges it failed to reveal that it may provide consumers’ personal data to the Chinese government.
Hisense “fails to disclose to Texas Consumers that under Chinese law, Hisense is required to transfer its collections of Texas consumers’ personal data to the People’s Republic of China when requested by the PRC,” the lawsuit said.
The TCL lawsuit does not include that particular accusation. But both the Hisense and TCL complaints claim the Chinese Communist Party may use ACR data from the companies’ smart TVs “to influence or compromise public figures in Texas, including judges, elected officials, and law enforcement, and for corporate espionage by surveilling those employed in critical infrastructure, as part of the CCP’s long-term plan to destabilize and undermine American democracy.”
The TVs “are effectively Chinese-sponsored surveillance devices, recording the viewing habits of Texans at every turn without their knowledge or consent,” the lawsuits said.
