A state court in Texas has issued a sweeping order halting the ability of a smart television manufacturer and its U.S. affiliate to collect, process, and transmit personal data from Texans’ devices after the state’s Attorney General alleged the company was operating a covert surveillance system that violated privacy and consumer protection laws.
Attorney General Ken Paxton announced that the court’s injunction targets a company that he says has ties to the Chinese Communist Party (CCP) and used its smart TV software to gather extensive data from users without proper disclosure or consent. The ruling reflects a growing trend of state prosecutors and privacy regulators taking aggressive action against emerging threats to consumer data and digital sovereignty.
Allegations: Unlawful Surveillance and Data Collection
According to the complaint filed by the Texas Office of the Attorney General, the smart TV manufacturer deployed digital functionality capable of capturing and transmitting information from users’ devices. This included viewing habits, device identifiers and other behavioral data that could be used to track and profile Texans without express opt-in consent.
The Attorney General’s office alleged that the company’s practices violated state consumer protection statutes and exposed users to heightened risk of foreign surveillance. The company is described in the court filings as having affiliations with entities linked to the CCP, raising national security and privacy concerns.
Court Order and Legal Basis
The Texas court granted a temporary restraining order and injunction that prohibits the defendants from:
- Continuing data collection activities through the smart TV platform
- Transmitting user data to their servers or third parties
- Advertising or marketing the television products without clear privacy disclosures
The legal basis for the order stems from alleged violations of the Texas Deceptive Trade Practices Act, which prohibits unfair or deceptive business conduct, along with related privacy and consumer protection provisions designed to safeguard personal data and prevent consumer harm.
Broader Privacy and Security Implications
This case highlights several broader trends in data privacy and digital security enforcement:
State-Level Privacy Enforcement Gains Momentum
As federal data privacy legislation remains stalled in Congress, state attorneys general across the U.S. are stepping into the regulatory vacuum. Texas’ action follows similar lawsuits over unlawful data processing, spyware deployment and undisclosed tracking in consumer devices and mobile apps. These cases signal a willingness by state prosecutors to leverage consumer protection laws as de facto privacy law tools when explicit federal frameworks are absent.
Geo-Political Concerns in Tech Supply Chains
The involvement of a company with alleged ties to the CCP underscores ongoing concerns about foreign influence in digital supply chains. Lawmakers and security experts have increasingly warned that embedded data collection capabilities — particularly in devices with network access — could be exploited for intelligence purposes if left unchecked.
Smart Devices as Surveillance Vectors
Smart TVs, connected appliances, and Internet of Things (IoT) products have become ubiquitous in American households, but they also provide new vectors for data collection. Unlike traditional computers or smartphones, many smart devices collect data passively and continuously, often without clear user interfaces for privacy choices. This asymmetry has triggered enforcement actions and consumer advocacy campaigns aimed at bolstering transparency and consent requirements in device firmware and applications.
Industry and Consumer Takeaways
Businesses that deploy connected technologies must recognize several compliance imperatives:
- Ensure Transparent Data Practices: Clear, accessible disclosures must accompany all data collection features, including background telemetry and behavioral tracking.
- Obtain Informed Consent: Users should be required to opt in before any personal data is collected, especially where sensitive information is involved.
- Limit Data Retention and Sharing: Only essential data should be stored, directly tied to legitimate service functionality, and only with explicit user permission.
- Assess Third-Party Risks: Relationships with entities that may pose security, geopolitical, or compliance risks should be scrutinized and mitigated.
For consumers, the case illustrates the need to scrutinize privacy policies, understand how connected devices handle personal data, and adjust settings where possible to limit unnecessary data exposure.
National Context: Privacy Enforcement Without Federal Law
In the absence of comprehensive federal privacy legislation, state actions like this one fill critical gaps. Attorneys general in several states have brought high-profile cases against technology companies for unauthorized tracking, data breaches, and non-consensual data practices. While federal agencies such as the Federal Trade Commission continue to bring enforcement actions under consumer protection statutes, state litigation provides an additional pathway to curb practices that regulators view as deceptive or harmful.
Privacy experts note that this patchwork approach, while effective on a case-by-case basis, also underscores the limitations of current U.S. privacy law and the ongoing debate over the need for a uniform national privacy standard.
Government and Industry Reaction
Officials in Texas framed the court’s decision as a victory for consumer rights and digital sovereignty, emphasizing that the order protects millions of Americans from opaque data flows and undisclosed surveillance. Industry groups cautiously welcomed the focus on transparency but have called for clearer, technology-neutral rules that do not single out specific companies or technologies without clear legislative backing.
Meanwhile, privacy advocates applauded the action as a necessary enforcement step, noting that it could set precedent for other states and regulators pursuing similar claims against devices or platforms that operate without adequate privacy safeguards.
Texas AG Pursue’s All Privacy Violators
The Texas Attorney General’s successful pursuit of a court order to stop alleged surveillance by a CCP-aligned smart TV company represents a significant moment in state privacy enforcement. It highlights the intersection of consumer protection, data privacy, and national security concerns in an age of ubiquitous connected devices. As lawmakers and regulators continue to grapple with emerging technology risks, cases like this underscore the importance of transparent data practices, informed consent and proactive compliance strategies for organizations operating in the digital ecosystem.
