Vizio said in a statement that it's "pleased" to reach a settlement."Going forward, this resolution sets a new standard for best industry privacy practices for the collection and analysis of data collected from today's internet-connected televisions and other home devices," Jerry Huang, Vizio's general counsel, said in the statement.
Vizio agreed to pay $2.2 million on Monday to settle a lawsuit brought against them by the New Jersey government and the Federal Trade Commission.
In doing so, they agreed to stop fighting the charge that the company "installed software on its TVs to collect viewing data on 11 million consumer TVs without consumers’ knowledge or consent." Vizio and "an affiliated company" built their smart TVs to spy on whatever their customers were watching, starting in Febuary, 2014, according to the complaint filed.
From the FTC: According to the agencies' complaint, starting in February 2014, VIZIO, Inc.
and an affiliated company have manufactured VIZIO smart TVs that capture second-by-second information about video displayed on the smart TV, including video from consumer cable, broadband, set-top box, DVD, over-the-air broadcasts, and streaming devices.
In addition, VIZIO facilitated appending specific demographic information to the viewing data, such as sex, age, income, marital status, household size, education level, home ownership, and household value, the agencies allege.