LG is now investigating whether their Smart TV's are breaking the Data Protection Act after a United Kingdom IT consultant, Jason Huntley, found out his LG Smart TV was sending encrypted information about his watching habits, even after he switched the privacy setting, BBC News reported.
The allegations came in October after Huntley realized the ads being shown on the TV were extremely customized for the needs of he and his family. After investigating, Huntley realized his TV preferences, as well as information from any device plugged into the Smart TV, was being sent back to the manufacturer, according to BBC News.
After realizing what was occurring, Huntley found a privacy setting option call "collection of watching info," which was switched on by default, and would still continue to send encrypted information even after Huntley switched it off, BBC News reported.
"That's a terrible implementation of the idea. It still sends the traffic but labels it saying I didn't want it to be sent," Huntley told BBC News."It's actually worse, I think, than if they'd not offered the opt out in the first place since it allows the user to believe nothing is being sent."
If all of Huntley's allegations are correct, LG could be breaking the law, according to BBC News.
A spokeswoman from LG told BBC News the company has been made aware of the issue and is investigating; the Information Commissioner's Office said they would also be investigating the issue.
"We have recently been made aware of a possible data breach which may involve LG Smart TVs," the spokeswoman told BBC News. "We will be making enquiries into the circumstances of the alleged breach of the Data Protection Act before deciding what action, if any, needs to be taken."
Huntley, who believes the sole purpose of the gathering and sending of the user information without consent is so it may be sold to advertisers, BBC News reported.
After calling the South Korean manufacturers, he was informed that when he bought the TV he agreed to all the terms and conditions attached to it, and that any other questions should be directed to the retailer who sold it to him, BBC News reported. After being contacted, LG said they are looking into the issue.
"I can't prove that this was being actively logged by LG, but nevertheless it was being transmitted in the clear across the internet's backbone to wherever the servers are located," Huntley told BBC News.
Huntley said even if LG was not using the data after he changed the privacy setting, it's still a dangerous practice because that same information can be used by hackers, according to BBC News.
In a response statement to the allegations, another LG spokesman said the company is "looking into reports that certain viewing information on LG Smart TVs was shared without consent," according to BBC, adding "LG offers many unique Smart TV models which differ in features and functions from one market to another, so we ask for your patience and understanding as we look into this matter."