Attorney General Paxton Secures Privacy Agreement With LG
May 12, 2026 – Texas Attorney General Ken Paxton has secured a significant legal agreement with LG Electronics U.S.A., Inc. aimed at strengthening consumer privacy protections for smart television users across the state. The settlement addresses concerns over the company’s use of Automated Content Recognition (ACR) technology, which has been used to track and collect viewing data without users’ clear knowledge or consent.
The agreement stems from a lawsuit filed by Paxton’s office alleging that LG engaged in unlawful data collection practices. ACR technology, commonly embedded in smart TVs, can monitor what users watch and transmit that information for advertising or analytics purposes. Under the new terms, LG is prohibited from collecting such data without first obtaining informed consent from consumers.
The state alleges Netflix built an extensive logging and analytics system capable of tracking billions of user “events” every day, including viewing habits, pauses, rewatches, searches, scrolling behavior, device information, and household-network data.
As part of the settlement, LG must implement software updates across its smart TV devices. These updates will include a prominently displayed pop-up disclosure that explains how viewing data may be collected and used. The same disclosure will also be made available on the company’s website, increasing transparency for both current and prospective users. Importantly, consumers will now have a clear and straightforward option to opt out of any data collection tied to ACR technology.
The agreement also includes provisions designed to limit where collected data can be sent. LG has committed to prohibiting any transfer of viewing data to entities associated with the Chinese Communist Party, addressing broader concerns about foreign access to American consumer data.
In a statement, Paxton emphasized the importance of protecting privacy within the home, noting that consumers should not be unknowingly monitored through everyday devices. He added that the settlement sends a strong message to the electronics industry about the need for transparency and accountability in data practices.
This case is part of a broader initiative by the Texas Attorney General’s Office targeting major television manufacturers. The LG settlement follows a similar agreement previously reached with Samsung. Meanwhile, ongoing legal actions continue against companies including Sony, Hisense, and TCL Technology.
State officials say these efforts are part of a wider push to ensure Texans are protected from unauthorized surveillance and that companies operating in the state adhere to strict privacy standards in an increasingly connected digital environment.
