Author: Sapna Maheshwari / Source: New York Times
Two Democratic senators have asked federal regulators to investigate the business practices of smart-television manufacturers amid worries that companies are tracking consumers’ viewing behavior without their knowledge.
In a letter on Thursday to Joseph Simons, the chairman of the Federal Trade Commission, Senators Edward J. Markey of Massachusetts and Richard Blumenthal of Connecticut said they were concerned about “consumer privacy issues raised by the proliferation of smart-TV technology.”
Companies are using new tools to identify and log what people are watching as part of an effort to profile consumers and direct ads to other devices in their homes. The letter cited a New York Times article, published last week, that detailed the practices of Samba TV, a San Francisco software company. Privacy advocates have criticized the company for not being transparent with consumers when it seeks permission to track their viewing on internet-connected TVs to sell ads.
“Regrettably,” the senators wrote, “smart-TV users may not be aware of the extent to which their televisions are collecting sensitive information about their viewing habits.” The letter went on to argue that Samba TV “does not provide sufficient information about its privacy practices to ensure users can make truly informed decisions.”
Samba TV, which said it collected viewing data from 13.5 million homes in the United States, has struck deals to place its software on certain sets from Sony, Sharp, TCL, Philips and other brands.
The company essentially pays television manufacturers to be included on their sets, saying its business model “does subsidize a small piece of the television hardware,” though it declined to provide further details.When consumers set up a TV with built-in Samba software, they encounter a screen asking them to enable Samba Interactive TV. The opt-in language reads: “Interact with your favorite shows. Get recommendations based on the content you love. Connect your devices for exclusive content and special offers. By cleverly recognizing onscreen content, Samba Interactive TV lets you engage with your TV in a whole new way.”
Most consumers agree to enable the software, which allows Samba to monitor their TV habits on a nearly second-by-second basis, identifying video games, HBO shows, political debates and more. The company…
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