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Vizio, Inc. ("Vizio"), a California-based company best
known for its internet-connected televisions, agreed to a $17
million settlement that, if approved, will resolve multiple
proposed consumer class actions consolidated in California federal
court. The suits' claims, which are limited to the period
between February 1, 2014 and February 6, 2017, involve
data-tracking software Vizio installed on its smart TVs. The
software allegedly identified content displayed on Vizio TVs and
enabled Vizio to determine the date, time, channel of programs and
whether a viewer watched live or recorded content. The viewing
patterns were connected to viewer's IP addresses, though never,
Vizio emphasized in its press release announcing
the proposed settlement, to an individual's name, address, or
similar identifying information. According to Vizio, viewing data
allows advertisers and programmers to develop content better
aligned with consumers' preferences and
interests.
Among other claims, the suits allege that Vizio failed to
adequately disclose its surveillance practices and obtain
consumers' express consent before collecting the information.
The various suits, some of which were filed in 2015, were
consolidated in California's Central District in April 2016 and
subsequently survived Vizio's motion to dismiss. Vizio had
argued that several of the claims were deficient, and contended
that the injunctive relief claims were moot in light of a February
2017 consent decree resolving the Federal Trade Commission's
("FTC") complaint over Vizio's collection and use of
viewing data and other information. To settle the FTC case, Vizio
agreed, among other things, to stop unauthorized tracking, to
prominently disclose its TV viewing collection practices and to get
consumers' express consent before collecting and sharing
viewing information.
The parties notified the district court in June that they struck
a settlement in principle. On October 4, 2018, they jointly moved
for preliminary settlement approval. Counsel for the consumers
argued that the deal is fair, because revenue that Vizio obtained
from sharing consumers' data will be fully disgorged and class
members who submit a claim will receive a proportion of the
settlement of between $13 and $31, based on a 2 to 5 percent claims
rate. Vizio also agreed to provide non-monetary relief including
revised on-screen disclosures concerning its viewing data practices
and deleting all viewing data collected prior to February 6, 2017.
The relief is pending until the court approves the settlement.
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