Vizio sold more than 11 million smart televisions since 2010. These televisions contained tracking devices which captured consumers' IP addresses and television watching practices without alerting consumers or getting their consent to track this data. The Federal Trade Commission ("FTC") and the New Jersey Attorney General's Office filed a Complaint against Vizio, which allegedly profited from these practices by selling consumers' viewing history to advertisers and other third party companies. The settlement announced this week requires Vizio to discontinue its unauthorized tracking, to prominently disclose its collection practices, and to get consumers' express consent before resuming tracking. Additionally, Vizio will pay $1.5 million dollars to the FTC and a civil penalty to New Jersey.
What does this mean for your company? If you are collecting user data, you need to consider the following, amongst other areas of potential concern:
(1) How are you explaining your data collection procedures to your customers?
(2) Are you obtaining express consent before collecting data?
(3) How easy is it for customers to opt-in or out of your collection practices?
Find out more about the lawsuit and settlement here: https://www.ftc.gov/news-events/blogs/business-blog/2017/02/what-vizio-was-doing-behind-tv-screen
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