Vizio Fined by Federal Trade Commission

I normally do not report on technology stories outside of Apple, but the recent story of Vizio being fined by the Federal Trace Commission (FTC) is one that I determined warranted some coverage.


The FTC has fined Vizio $2.2 Million for their behaviors. The backstory is that in 2014 Vizio began tracking what viewers were watching. This was done by capturing a set of pixels on the screen, sending this information, along with other information, to their servers. Through the use of machine learning, Vizio was able to match those pixels to a vast catalog of shows. This gathering occurred on a second-by-second basis. The information gathered was then aggregated and sold to third-party advertisers. This information that was obtained included demographics, location, and viewing habits. If it was merely a mechanism for gathering what was watched, it may not be considered too bad, but it was more. Despite how bad this was, it was not just TVs that were made after 2014, but that Vizio went back and proactively enabled this on TVs as far back as 2011. The primary complaint was that Vizio did not get a viewer’s consent before performing this action.

Problems with this

The biggest issue that I have with this, besides the fact that this was being done without the knowledge of users, is that Vizio has been the only one who has been caught doing this. Does this mean that they are the only company that is performing in this behavior? I highly doubt it. It is very likely that many other manufacturers are also performing this action.

Bandwidth Usage

One aspect that is not always readily recognized in today’s technology-laden world is the amount of bandwidth being used. While the information may have been sent in batches, it still uses some bandwidth of every user. Depending on how much the TV was used, this could easily add up. Take this with consideration that many users now fall into data caps and this uses up that bandwidth.

Mitigations that can be done now

There are a few ways to not have this occur. The first is disconnect the TV from your network. If the TV is connected via a physical ethernet cable (which is unlikely for most users), you can simply unplug it. However, if it is connected via Wireless, you will need to disconnect it from the Wireless, and if possible, set the TV to completely “forget” the network, so it cannot reconnect on its own.

The downside to do this though, is that since it is a “Smart TV”, if you use any of the built-in services, like Netflix, you may not be able to use them. This could likely include not being able to watch Netflix in 4K.

Streaming Boxes

Another possible solution is to use an external 3rd party box, like Apple TV, Amazon Fire TV, Amazon Fire TV Stick, or even an Roku, in conjunction with disconnecting the TV from the network. While some of these devices may also be tracking what you watch, it is more likely that it is for their own purposes and not to sell to third-parties. However, you will want to read the agreements before saying anything definitive.

Long-term Fixes

There is no simple fix that can be made for this. The fix has to come either through governmental regulation or through industry regulations. The other option, which is not likely, is for people to tell the industry with their dollar. This is likely due to the limited availability for “dumb” TVs on the market. There is a small contingent of people who would be willing to pay a bit more for a TV that did not have any “smart” capabilities. I know I would be one of those people.

Final Thoughts

The solution for this problem is not an easy one to determine. It may take some pushback from consumers to demand that privacy regulations be created so that the consumer is in charge of how their information is used. This must come with regulation. The fine of Vizio is designed to let all manufacturers know that they must now get explicit, not implicit, permission from users before gathering the information. The damage, from the existing gathering and selling of information, is already done. Being required to get permissions from users will undoubtedly ultimately hurt the bottom line of the television manufacturers, since fewer users will agree to the collection, thus, they will not be able to sell as much information to advertisers.

It would behove the government to begin lobbying even larger fines for any company that performs in the same manner as Vizio. If the government is truly intent on curbing this type of abuse, as well as others, making it hurt financially may be an effective way of doing just that.

Washington Post