I have been following the legal developments in Texas regarding consumer privacy and the data collection practices of major television manufacturers. Late last year, Texas Attorney General Ken Paxton sued five TV makers : LG, Samsung, TCL, HiSense and Sony over their practices related to televisions collecting data on what people are watching.
Two of the cases have already been settled: Samsung and LG. In my latest analysis video, we take a look at the LG case’s settlement terms.
While Paxton’s press release suggests significant changes for consumer protection, a closer look at the actual agreement reveals a more nuanced agreement that will not alter the landscape for most current users.
The settlement requires LG to obtain affirmative consent before collecting viewing data and to provide a clear way for users to opt out. However, these requirements come with specific timelines and limitations. The conspicuous pop-up disclosures highlighted by the Attorney General’s press release do not apply to existing LG televisions. Instead, they are mandated for 2027 and subsequent models. While 2025 models will receive an update to make the onboarding process more visible, older sets will maintain a user agreement flow similar to what is currently in place, with the primary change being the placement of certain text at the top of the agreement.
In my examination of the current LG interface, I noticed that opting out of these data collection agreements often restricts the use of the television’s smart features. Users who do not agree to the terms may find themselves unable to launch third-party applications like YouTube or Plex. The settlement does not clearly address whether LG must allow access to these features for those who choose not to share their data. Furthermore, the entire agreement is set to expire after five years, at which point the mandated practices are no longer legally required under this specific settlement.
The scope of the agreement is also limited to smart TVs, leaving other connected devices unaddressed. Recently, reports have surfaced regarding LG monitors installing software on Windows computers through the standard update process without direct user intervention. This software has been found to include advertisements and potentially is installing full applications for paying third-party services. Because these devices are categorized as monitors rather than televisions, they fall outside the parameters of the Texas settlement, illustrating how manufacturers may continue data practices through different product lines or changing the nature of their existing products.
This LG agreement follows a previous Texas settlement with Samsung, the details of which remain largely private as it was reached before formal court proceedings. Three lawsuits remain pending against Sony, TCL, and Hisense. As these cases move forward, it remains to be seen if the outcomes will provide more protections or if they will follow the precedent set by the LG deal.