FTC Fines VIZIO $2.2 Million For Collecting Viewer Data Without Consent

Written by: Richard Sheinis, Esq.

Vizio, Inc., one of the world’s largest manufacturers of internet connected televisions has agreed to pay $2.2 million to settle charges by the Federal Trade Commission and the New Jersey Attorney General that it installed software on its TVs to collect viewing data on 11 million consumer TVs without the consumers’ knowledge.

Vizio TVs have a “Smart Interactivity” feature which enabled the collection of consumers’ second by second viewing data, including video from consumer cable, broadband, DVD, over the air broadcasts and streaming devices.  Even worse, Vizio facilitated appending  demographic information to the viewing data, including age, sex, income marital status, household size, education level, home ownership, and household value, and then sold this information to third parties, according to FTC allegations.

Here is my question, how much money did Vizio make by selling this information to third parties?  Isn’t a $2.2 million fine a drop in the bucket to one of the world’s largest TV manufacturers?