Vizio Reaches Potential Data Sharing Class Action Settlement

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TV maker Vizio has reportedly settled a group of class action lawsuits alleging the company secretly recorded and sold information about viewers.

A group of class action lawsuits that were ultimately consolidated into multidistrict litigation (MDL) alleged that Vizio smart televisions recorded viewer choices and habits.

The company then sold the information to advertisers without the knowledge or consent of users, claimed the Vizio data privacy class action lawsuits.

The preliminary agreement for the Vizio data privacy class action lawsuit settlement will be submitted to federal court in September. If approved, Vizio will escape class action lawsuit claims that it violated federal privacy laws when it recorded and sold viewer information.

The Vizio data privacy class action lawsuit was initiated in 2015 after a ProPublica report revealed that the company was tracking viewer habits and selling the information. Twenty class action lawsuits jumped on board and were consolidated into one action.

According to the Vizio class action lawsuit, various Vizio devices, from televisions to smart phones, had been collecting user information. The plaintiffs alleged that the company implanted a “Smart Interactivity” feature in 2014 that collected viewer information.

However, alleged the Vizio class action lawsuit, the feature was added without the express consent of users or even their knowledge. Instead, the plaintiffs said the company made it sound like the feature needed to be used to maximize the performance of their devices.

The Vizio class action lawsuits claimed that the collection of viewer data without notification or consent was unlike anything else in the industry. Further, the company went on to sell that information for a profit.

The television maker argued the consolidated Vizio class action lawsuit should be dismissed because it claimed the federal law plaintiffs said they were violating did not apply to manufacturers.

Vizio also argued that it did not collect identifying information about users – only their ZIP codes, IP addresses, computer names and serial numbers.

A federal judge rejected Vizio’s arguments to dismiss the case and allowed the Vizio data privacy class action lawsuit to proceed.

In addition to the Vizio data privacy class action lawsuit, the company was also hit with an enforcement action from the Federal Trade Commission (FTC) and the state of New Jersey.

The FTC alleged that it deceived consumers by not appropriately disclosing the fact that it tracked viewer habits through the devices it sold.

Vizio agreed to pay $2.2 million to settle the FTC and New Jersey legal actions and also agreed to stop collecting viewer data.

The Vizio class action lawsuit sought to represent a nationwide Class of those who purchased Vizio devices with the Smart Interactivity feature for violations of federal privacy law.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs are represented by Eric H. Gibbs, Andre Mura and Linda Lam of Girard Gibbs LLP and Joseph W. Cotchett, Adam J. Zapala and Gwendolyn R. Giblin of Cotchett Pitre & McCarthy LLP.

The Vizio Data Privacy Class Action Lawsuit is In re: Vizio Inc. Consumer Privacy Litigation, Case No. 8:16-ml-02693, in the U.S. District Court for the Central District of California.

UPDATE: On Oct. 4, 2018, smart TV owners reached a settlement worth $17 million in a class action lawsuit alleging Vizio secretly recorded and sold information about viewers’ watching habits.

UPDATE 2: On Feb. 8, 2019, the Vizio smart TV class action settlement is now open. Click here to file a claim.