The rise of connected TVs (CTVs), including smart TVs and streaming devices, has transformed how we consume content. However, this convenience comes with a hidden cost—your privacy. A recent report from the Center for Digital Democracy (CDD) reveals that the streaming industry has developed a massive surveillance system, raising concerns about how our data is being used and collected.
According to the report, companies behind streaming services and devices leverage advanced tracking techniques designed to serve advertisers. The unintended consequence is that these connected TVs have become a “privacy nightmare,” as described by Jeffrey Chester, co-author of the report and CDD’s executive director. This situation has led to calls for stronger regulations to protect consumers.
In-Depth Look at CTV Tracking
The 48-page report, titled How TV Watches Us: Commercial Surveillance in the Streaming Era [PDF], provides a comprehensive overview of how streaming services and devices track users. The CDD references major companies such as Amazon, NBCUniversal, LG, Samsung, and Vizio, showing how they target viewers in ways that pose severe privacy risks. This growing concern has led the nonprofit to send letters to the Federal Trade Commission (FTC), Federal Communications Commission (FCC), and California’s Privacy Protection Agency, urging stricter oversight of these practices.
Chester emphasizes that connected TVs not only invade consumers’ privacy but also put entire families at risk by gathering sensitive information on health, children, race, and even political preferences. Despite rising subscription fees and increasing ads, the real price of streaming comes in the form of data exploitation.
The Risks of Misleading Privacy Policies
The report highlights the misleading nature of privacy policies associated with CTVs. These policies often contain minimal details on data being collected and tracked. Moreover, tactics like cookie-less IDs and identity graphs mean that promises of not sharing personal information are meaningless.
When you buy a smart TV or a streaming device, you invite a “digital Trojan Horse” into your home. These devices track more than your viewing habits—they can collect detailed information about your identity and behaviors.
The Role of Generative AI in CTV Advertising
One of the most concerning developments detailed in the report is how generative AI is being used to enhance targeted advertising. Companies like Amazon Web Services (AWS) and ad-tech firm TripleLift are experimenting with using AI to insert new product placements into streamed content without interrupting the viewing experience.
For example, a product seen by one viewer might not be visible to another, depending on their data profile. Where ads are placed dynamically into scenes of shows to align with advertisers’ campaign goals is currently being tested by NBCUniversal for Peacock.
Generative AI can also enable highly personalized ads, with different versions of the same ad tailored to individual viewers based on factors like location or preferences. This AI-driven ad targeting raises ethical concerns about how much data is harvested to fuel these personalized experiences.
Pharmaceuticals, Politics, and Potential Discrimination
The report also delves into the troubling use of CTVs in pharmaceutical advertising. The US is one of only two countries that allow direct-to-consumer pharmaceutical advertising, which has already raised concerns about deceptive practices and the influence of high-pressure sales tactics. Even though companies claim health data used for ad targeting is anonymous, identity management tools can still target specific individuals.
Political advertising on CTVs is another major concern. Data collected on political orientations and emotional states could be exploited to run covert, highly targeted campaigns, spreading disinformation and potentially exacerbating political polarization. With no transparency or oversight, the potential for manipulation is high.
Additionally, communities of color—specifically Black, Hispanic, and Asian-American populations—are being singled out by marketers as lucrative targets due to their high adoption rates of digital media. The report raises concerns about how data from these communities could be used in discriminatory ways, particularly in political advertising.
The Need for Regulation
In light of these findings, the CDD has called for urgent regulation of the CTV industry. In its letter to regulatory bodies like the FTC and FCC, the nonprofit asks for a thorough investigation into the industry’s antitrust, consumer protection, and privacy practices. They emphasize that even paying for ad-free streaming doesn’t guarantee data privacy, as users’ information is still being collected and sold.
The report urges regulators to consider building on existing legislation, such as the 1988 Video Privacy Protection Act, to address the current state of connected TV technology. The CDD also recommends that antitrust regulators examine the business practices of major CTV players like Amazon, Comcast, and Disney to foster competition and diversity in the market.
Conclusion
The convenience of connected TVs and streaming devices comes at a significant cost to privacy. Companies continue to develop sophisticated tracking systems aimed at serving advertisers, consumers are left vulnerable to data exploitation. The need for stronger regulations is clear with concerns ranging from pharmaceutical and political advertising to potential discrimination. The CDD’s report is a wake-up call for regulators to take action before these privacy risks become even more deeply embedded in the streaming industry.
