Is Smart TV HDMI Spying Legal?

After last week’s video about how smart TVs spy on users, I wanted to take a deeper look at the legalities around allowing TV manufacturers to spy on everything we watch – including what’s connected to our TVs via the HDMI port.

Check it out in my latest video!

As a recap, most televisions don’t just track what apps you use—they can identify what’s on the screen or what’s coming through the speakers, then send that data off to advertisers and data brokers. It’s all done through automatic content recognition, or ACR, and it’s completely legal because users consent to it, often without understanding they have.

When I factory-reset my Roku TV, the setup process gave me two options in regards to ACR: “Agree” or “Manage Preferences.” There was no simple “Yes” or “No.” Most people, eager to get started, are going to hit “Agree.”

If you do click through to “Manage Preferences,” you can then opt out, and Roku will still let you use its smart features. That’s more than I can say for my LG TV, which shut down all its smart functions when I declined a new privacy policy after a firmware update. I could still use connected devices, but the built-in apps were locked out until I accepted the new terms. Roku’s approach at least lets you continue using the interface, but I doubt many users go through the trouble to opt out. A real opt-in should offer a clear yes-or-no choice, not bury “no” under layers of menus.

Roku’s privacy policy itself is over a hundred pages long printed out, and scrolling through it takes several minutes. Buried in that text are all the details about how the company collects and sells data. The numbers make it clear why this is so central to their business—Roku’s recent quarterly report showed more than a billion dollars in gross profit from its platform, compared to only about $146 million from hardware. The TVs are just the delivery mechanism; you and your data are the product.

Apple has taken the opposite approach by asking users directly whether they want to be tracked across apps. The first choice shown is “Ask App Not to Track,” followed by “Allow.” When Apple rolled this out, 96 percent of U.S. users opted out, and even now most people still refuse tracking when given a clear choice. Reports from analytics firms put the current opt-in rate somewhere between 15 and 30 percent.

Looking ahead, I’m concerned about where this technology might go as AI becomes more powerful. Right now, companies say they’re only sending “fingerprints” of screen images, not the images themselves, but even small local models that can run on smartphones analyze photos in surprising detail. It’s easy to imagine a manufacturer deciding that full-image uploads could make targeting more precise and profitable.

Many viewers told me the simple answer is to keep TVs offline. I agree—that’s the easiest fix. Unplug the Ethernet cable, disable Wi-Fi, and use an external device like an Apple TV or a computer if you want streaming apps. But most consumers don’t do that. When I stopped by Best Buy recently, the salesperson said people mainly care whether their new TV supports the apps they use most. They’re connecting their sets because they want convenience, not because they’ve read a privacy policy.

If regulations ever catch up, maybe they’ll require true opt-in choices instead of manipulative prompts. Until then, the safest move is still to disconnect your television from the internet and think carefully about what you’re agreeing to.

For a good resource on taking back control, my friend Veronica over at Veronica Explained has a video on cutting these services out entirely and running everything with open-source tools. She’s got some solid ideas for handling your own streaming setup without giving away your data.