FTC Announces $2.2 Million Settlement with VIZIO
February 8th, 2017
By: Danielle Dobrusin
On February 6, 2017, the FTC announced that it has reached a settlement with VIZIO, Inc. – “one of the world’s largest manufacturers and sellers of internet-connected ‘smart’ televisions.”[1] The settlement is in response to charges brought by both the FTC and the Office of the New Jersey Attorney General claiming that VIZIO “installed software on its TVs to collect viewing data on 11 million consumer TVs without the consumers’ knowledge or consent.”[2]
The FTC brought this action under Section 13(b) of the Federal Trade Commission Act, 15 U.S.C. §53(b) (“FTC Act”), alleging that VIZIO engaged in unfair and deceptive acts or practices in violation of Section 5(a) of the Act. In their complaint, the FTC alleged that beginning in February 2014, VIZIO and an affiliated company manufactured VIZIO smart TVs that captured detailed information about video displayed on the TV. The complaint also alleged that VIZIO facilitated the collection of specific demographic information of the viewer including: sex, age, income, marital status, household size, education level, home ownership, and household value.
Under the stipulated federal court order, VIZIO must pay $2.2 million to settle the charges and must prominently disclose and obtain affirmative express content for its data collection and sharing practices. The order also prohibits VIZIO form making misrepresentations about the privacy, securing, or confidentiality of consumer information that they collect.
[1] https://www.ftc.gov/news-events/press-releases/2017/02/vizio-pay-22-million-ftc-state-new-jersey-settle-charges-it
[2] https://www.ftc.gov/news-events/press-releases/2017/02/vizio-pay-22-million-ftc-state-new-jersey-settle-charges-it