LG Smart TVs Face Privacy Allegations

YouTube channels Gamers Nexus and Level1Techs, working with two security analysts, said LG’s Automatic Content Recognition system can capture short audio and video snippets, compare them with media databases and build profiles for LG Ad Solutions. The investigators also claimed a “trigger window” remains open for 10 to 15 seconds after a voice command is recognized, allowing the TV to transcribe speech in the room and store it in memory.

LG denied the allegations, saying voice data is processed only when a user presses the microphone button on the remote or activates a wake phrase such as “Hi LG” after opting into remote voice recognition. The company said ACR is optional and used for customized recommendations and ads only when users explicitly consent.

The allegations land in a market where privacy is already a live issue for connected devices, streaming platforms and ad-tech firms. LG said it tracks 386 million so-called secondary devices in the U.S., far more than the 216 million smart TVs sold globally, underscoring the scale of the data network tied to household screens.

For investors, the immediate risk is reputational damage to LG’s ad business and broader pressure on smart-TV manufacturers that rely on usage data to support margins. A tougher privacy backlash could also ripple into the wider connected-TV ecosystem, where advertisers pay for targeting precision and device makers are increasingly looking to software and advertising revenue for growth.

The controversy also adds another layer to the debate over who really owns the data generated inside the home. Privacy groups argue the permissions are buried in lengthy terms of service — LG’s own disclosure reportedly runs about 50,000 words — making meaningful consent difficult for ordinary users to assess.

The next catalyst is likely to be whether regulators, consumer advocates or platform partners broaden scrutiny of LG’s disclosures and whether the company’s ad unit must change how it collects and packages household data.