Another company commits reputational suicide

Nov 10, 2015 15:02 GMT  ·  By
Vizio tracks smart TV users, sells their data to online advertisers
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   Vizio tracks smart TV users, sells their data to online advertisers

Another user privacy scandal has erupted, just as big as the one that hit AVG in September. This time around, the culprit is Vizio, a company that manufactures and sells smart TVs.

According to reports, Vizio is collecting information on smart TV owners and then selling it to online advertisers, allowing them to deliver more accurate ads on the TV owner's other devices, like their smartphone, tablet, notebook, or PC.

Vizio tracks everything you watch on your smart TV

Vizio collects information on the shows the user watches, the time and date, the channel to which a user regularly tunes in, and ties all this information to the TV owner IP address.

This data is sold to online advertising platforms that already have databases of IP addresses, related to other types of information acquired from other mediums, or other companies.

Legally, Vizio is covered by its terms of service, which say that "non-personal identifiable information may be shared with select partners."

The same terms of service also mention the company's Smart Interactivity feature that comes enabled by default for all smart TVs the company is selling. The feature can be turned off, but the practice is a little shady, knowing that its competitors, LG and Samsung, provide a similar feature turned off by default.

US laws don't specifically prohibit Vizio from doing this

Laws in the US prohibit cable and video renting companies from packaging and selling information on their users. A similar law is not present for Internet-based companies or electronic manufacturers.

The practice of collecting user data without giving users a way to opt out was pioneered and perfected by Google. Facebook employs a similar tactic, tracking users across the Internet with the help of its third-party embedded Like and Share buttons. Not long ago, the company got in trouble in Belgium, where a judge ordered it to stop collecting such information about Belgium users without their consent.

An explanation for Vizio's actions may be its approaching IPO filing. Providing an alternative stream of revenue outside the reseller business is a sure way to boost share prices.

A Vizio smart TV
A Vizio smart TV

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Vizio tracks smart TV users, sells their data to online advertisers
A Vizio smart TV
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