Your TV's set-top box is ratting you out to advertisers. At least that's the contention of consumer groups that have filed complaints with federal authorities demanding a crackdown on overzealous data collection.
The complaints to the Federal Communications Commission and Federal Trade Commission say pay-TV companies fail to disclose to customers the extent of their data collection or the ways people's viewing habits will be used for marketing purposes.
"They're hiding the ball," said Dallas Harris, of the advocacy group Public Knowledge who co-wrote the complaints. "They say in their privacy policies that they may collect data on you, and they may use it for marketing. They know that's what they're doing. So there's a big disconnect between what they say and what's actually happening."
The complaints to the FCC and FTC were filed by Public Knowledge, Consumer Watchdog, San Francisco's TURN, the Center for Digital Democracy, and the Consumer Federation of America.
Spokespeople for both federal agencies declined to comment on the complaints or what action may be taken.
The privacy concerns come amid jockeying by the pay-TV industry to dodge a proposed FCC rule that would "unlock" set-top boxes and allow any company to make them. The industry has said it would be willing to ditch the boxes and instead have customers stream programming via Netflix-style apps. The FCC said more details are needed.
In the meantime, consumer advocates say, Big Brother is watching.
In their complaints, the groups call for better disclosure of industry practices and allowing pay-TV customers to opt in to have their viewing shared with marketers, rather than the current requirement that they opt out. They also call upon federal officials to better enforce existing rules.
Title 47, Section 551 of the U.S. Code says that pay-TV companies must disclose "the nature of personally identifiable information collected or to be collected with respect to the subscriber and the nature of the use of such information."
It also says pay-TV companies "shall not disclose personally identifiable information concerning any subscriber without the prior written or electronic consent of the subscriber."
I reached out to all the major pay-TV companies. The ones that responded were unanimous in dismissing privacy issues raised in the complaints and said they fully comply with regulations.
Most pay-TV companies say they don't need an opt-in because the information they collect is in aggregate form — that is, individual viewers are not identified to marketers.
Harris at Public Knowledge called that claim ridiculous. Once aggregate information is combined with data from other sources, she said, it can be very easy to identify specific customers.
"Moreover, they're telling marketers that they can target individual customers with ads," she said. "They can only do that if they know and share what individual customers are watching."
That's key. If I see ads for travel and hotel packages because I watch the National Geographic Channel, there's nothing aggregate going on. They're looking right at me.
Federal rules say prior consent is required in such cases. The complaints make a fair point.
David Lazarus is a Los Angeles Times columnist.
