In July 2020 the Bundeskartellamt concluded a sector inquiry into smart TVs. The sector inquiry examined in particular how smart TV manufacturers (that is manufactures of TVs which can connect to the internet) use user data.

Results

TVs collect data

The sector inquiry showed that smart TVs can collect personal data in numerous ways. Companies make use of this possibility to varying extents. They may record and analyse a person’s individual viewing habits, app use, browsing and click behaviour or biometric data like voice or cursor movements as well as contents played via the TV set.

Serious shortcomings in terms of transparency

The Bundeskartellamt found that almost all smart TV manufacturers operating in Germany use privacy policies that have serious shortcomings in terms of transparency. The “one fits all” approach of the privacy policies leaves consumers without reliable information on what types of personal data are processed, which type of data processing is triggered by which use process, which data are transferred to third parties and for how long their data are stored. As a consequence, they cannot change their use behaviour to minimise the amount of personal data shared.

Data security

The sector inquiry demonstrated that manufacturers’ efforts to ensure a high level of data security vary. However, a lot of manufactures failed to ensure that their devices’ security standards were maintained through software updates in the years after the purchase. At the time, no company provided reliable information on how long security updates would be available for its products. However, this information is essential for consumers to assess how long they can use the device without risks.

Recommendations

Following its sector inquiry, the Bundeskartellamt called, in particular, for companies to provide consumers with even better and more to-the-point information about how smart TVs and IoT devices in general can extensively collect and process data. It also called for consumers to be given a clearly defined legal right to software updates from manufacturers. A corresponding EU directive was implemented in Germany in 2022, obliging manufacturers by law to provide software and security updates for the expected lifespan of their devices.

Consumer tips

Before buying a smart TV

Before buying a smart TV the Bundeskartellamt recommends consumers to check whether the manufacturer offers software and security updates for the intended period of use.

Before setting up a smart TV

When (initially) setting up your smart TV, it is worth choosing settings that share as few data as possible and using the options provided to opt out of the use of your data. You can uninstall all apps you do not need.

Security updates – older devices

It is always important to install security updates. With older devices, in particular, you should check how long the manufacturer will continue to provide updates for the device. If it is no longer possible to obtain software updates (particularly if security updates are no longer provided), you should consider disconnecting your device from the internet and using other devices to access smart functions.