The State of Texas has obtained a temporary restraining order (TRO) against Samsung that prohibits the South Korean company from collecting audio and visual data about what Texas consumers are watching on their TVs.
Like other major TV manufacturers, Samsung employs Automated Content Recognition (ACR) technology to capture periodic screenshots, analyze viewing activity, and identify users’ content preferences. The data is used for more targeted advertising.
Texas also filed lawsuits against Sony, LG, and China-based companies Hisense and TCL Technology Group Corporation last month, over unlawful use of ACR technology and concerns os US user data being accessed by China.
Texas Attorney General Ken Paxton claims that ACR is used to capture screenshots every 500 milliseconds without consumers’ knowledge or consent.
The District Court of Collin County in Texas has ruled that this activity violates the Texas Deceptive Trade Practices Act (DTPA) and ordered Samsung Electronics America Inc. and Samsung Electronics Co., Ltd to stop using, selling, collecting, and transferring data from Texas-based TVs until January 19.
A hearing is scheduled for tomorrow to determine whether a temporary injunction will be issued.
The TRO document lists several justifications for the decision to issue a temporary restraining order, including Samsung’s deceptive ACR enrollment practices and the allegation “that the Chinese Communist Party (“CCP”) has access to the information.”
“The Court finds that there is good cause to believe that SAMSUNG’s process for enrolling consumers in the ACR data collection program is false, deceptive, or misleading because it does not disclose to consumers how much data is being collected about them, how the data is actually being used, and that the Chinese Communist Party (“CCP”) has access to the information,” Temporary Restraining Order against Samsung
Furthermore, the court highlights that the enrollment process is confusing and opaque, pressuring users to consent to ACR through “dark patterns,” and making it practically impossible to fully opt out of the data collection mechanism, letting them only “limit the use” of the collected data.
The court noted that users can consent to ACR data collection with a single click, but details about the program are available after enrollment, and reviewing the privacy statements and disclosures requires more than 200 clicks.
“Consent from consumers is not informed, privacy choices are not meaningful, users cannot reasonably understand the surveillance model, and the system defaults towards maximal data extraction,” reads the TRO document.
The current TRO against Samsung extends to all company “officers, agents, employees, and all other persons in active concert or participation with them” from continuing to use, sell, transfer, collect, or share ACR data relating to Texas consumers.
While this order applies only to Samsung smart TVs in Texas, it could set a precedent for nationwide action against data-collection practices present in consumer electronics.
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