Smart TVs are “digital Trojan horses”

An alarming report published by Center for Digital Democracy (CDD – Center for Digital Democracy) reveals that Smart TVs and streaming have become true “digital Trojan horses” in consumers’ homes.

The 48-page study, titled “How TV Watches Us: Commercial Surveillance in the Streaming Era” (PDF), exposes the invasive data collection practices employed by the connected TV (CTV) industry.

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CTV Industry Surveillance System

According to Jeffrey Chester, co-author of the report and executive director of the CDD, the companies behind the streaming industry have developed a “surveillance system” that has long compromised consumer privacy and protection. Unprecedented tracking techniques aimed at pleasing advertisers have turned CTVs into a “privacy nightmare.”

The report cites several sources, including specialized publications, blog posts and statements from major streaming players, such as AmazonNBCUniversal, Tubi, LG, Samsung and Vizio. It provides a detailed look at the many ways in which streaming services and streaming hardware target viewers in innovative ways, but which CDD argues pose serious privacy risks.

One of the most worrying points highlighted in the report is the increasing use of generative artificial intelligence to enhance targeted advertising capabilities. For example, Amazon Web Services and ad technology company TripleLift are working with proprietary models and machine learning for dynamic product placement in streaming TV shows. This means that new scenes featuring product displays can be inserted in real time “without interrupting the viewing experience”.

Concern about advertisements related to health and politics

Additionally, the report warns about the potential misuse of health data for targeted advertising of pharmaceutical products, a practice that raises concerns in the public health community due to its high-pressure sales techniques, misinformation, and deceptive practices.

CDD also expresses concern about the potential political impact of extensive data collection and tracking by the CTV industry. The report suggests that political candidates could use this data to run “covert personalized campaigns,” leveraging information about viewers’ political orientations and “emotional states.”

Another alarming aspect is the specific targeting of Black, Hispanic and Asian American communities in the US, which are seen by marketers as “highly profitable targets” due to the rapid adoption of new digital media services and brand loyalty.

Chester warned that the widespread use of racial and ethnic data for advertising and marketing targeting is growing, which he considers sensitive information that should not be applied to data profiles used for targeting on CTV and other platforms.

Responsible authorities have already been alerted

In response to these concerns, CDD sent letters to the Federal Trade Commission (FTC), Federal Communications Commission (FCC), California Attorney General, and California Privacy Protection Agency (CPPA), requesting an investigation into the industry of US CTV, “including antitrust, consumer protection and privacy fundamentals”.

The group emphasizes the challenges streaming users face in protecting their data from advertisers, even those who pay for ad-free streaming.

The report concludes that connected television has grown as an unregulated medium in the United States, along with other platforms, devices and applications that are part of the massive internet industry. CDD urges the FTC and FCC to investigate CTV practices and consider expanding current legislation, such as the Video Privacy Protection Act of 1988.