LG could be facing a backlash after allegations that its Smart TVs are sending swathes of personal information back to the company's servers without customers being told exactly what they are entering into when they buy one.
For consumers already uncomfortable with the level of data-mining by electronic devices and digital services, this story could fan the flames of discontent.
A UK blogger yesterday highlighted a loophole with LG Smart TVs which allows the electronics manufacturer to collect users' details including offline file names for ad targeting. He also claimed that 'opting out' of data mining doesn't actually opt users out.
The DocterBeet post identified that his LG Smart TV is sending information on his viewing habits back to LG servers, which is then used to serve targeted ads to him on the LG Smart TV homepage.
DoctorBeet found an 'opt out' of “Collection of watching info” in the settings (which was default set to 'On') but claimed that turning off the option doesn't actually stop the data collection.
Of particular concern to DoctorBeet is he found his TV was transmitting information back to LG that was unrelated to his TV and viewing habits. The names of his personal files on his external hard drive (which was connected to the TV via a USB port) was also sent back to LG.
Locally, the company won't be drawn on what it may mean in Australia.
The revelation could stir up a consumer backlash from customers who are already wary of being tracked by electronic devices. A Newspoll survey found only 32% of Australians were comfortable with their browsing behaviour being used for the purposes of targeted advertising.
After contacting LG UK about the privacy breach, the blogger was advised by the company that because he had accepted the terms and conditions of the TV at the purchase and set-up stage, he had, in effect, allowed for the data collection to happen. The response from LG also laid the blame at the retailer for not communicating this to him.
The Australian operations wouldn't be drawn on whether similar practices are occurring locally, only that it was “investigating”.
“LG Australia acknowledges the issues that have been identified in the UK,” LG Australia head of public relations Phillip Anderson said. “We take the claims very seriously and are currently investigating the situation at a local level.”
The level of connected internet-enabled TVs in Australia is, anecdotally, very low. The penetration of internet-enabled TVs in Australia sits at 22%, according to Nielsen/OzTam/RegionalTam, but no reliable study of activated sets exist.
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