Court Rules
All enforcement actions
SettlementMedium RiskMultistate

NJ AG Settles with VIZIO for $1M Over Secret Smart TV Tracking

VIZIOFebruary 6, 2017New Jersey Attorney General

Penalty Amount

$1,000,000

Summary

VIZIO and Inscape settled allegations that they collected viewing data from Smart TVs without adequate disclosure and consent, selling it to third parties. They agreed to pay $1 million to New Jersey, destroy collected data, and implement privacy measures including obtaining consumer consent and establishing a privacy program.

Remedy

VIZIO and Inscape must pay $1 million in penalties and fees, destroy consumer viewing data collected before March 1, 2016, prominently disclose data collection practices, obtain affirmative express consent from consumers, establish and maintain a comprehensive privacy program, undergo initial and biennial assessments by a third party, submit compliance notices, and maintain records for 20 years.

Monetary PenaltyData DeletionCompliance ProgramAudit RequirementReporting RequirementsCorrective Notice

Contract Impact

In-house legal teams should review all customer-facing agreements (terms of service, privacy policies) and vendor contracts involving data collection or smart device software. Focus on clauses governing data collection disclosures, consumer consent mechanisms (especially for continuous/second-by-second tracking), third-party data licensing/sales, and data retention/destruction obligations. Changes will likely be needed to ensure clear, affirmative consent for viewing data collection, provide explicit opt-out rights, restrict data use to disclosed purposes, and incorporate mandatory data destruction protocols and privacy program certifications.

Contract Search Terms

viewing data collection consentsmart TV data disclosure clausethird-party data sharing agreementconsumer opt-out mechanismdata retention and destruction policyembedded software privacy noticeaudience measurement data licenseadvertising targeting consentprivacy program implementation requirementcontinuous tracking disclosure

Laws Cited

New Jersey Consumer Fraud ActFederal Trade Commission Act

Violation Types

Entity Details

Entity

VIZIO

Industry

Technology

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"VIZIO"
Fine Amount
"The State obtained $1 million"
Laws Cited
"New Jersey Consumer Fraud Act"
Laws Cited
"Federal Trade Commission Act"
Violation Types
"failing to effectively inform consumers that VIZIO smart televisions were continuously collecting and storing information about their viewing habits"
Violation Types
"Collecting and sharing sensitive data without consumers’ consent"

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