According to pcmag.com:
An Internet-enabled TV set that supports movie streaming from content providers
such as Netflix, Amazon and Hulu. Also called a "connected TV," a
smart TV may contain a browser for general Web surfing and also be able to
execute built-in or downloaded applications. A QWERTY keyboard may be built
into the remote control; however, some smart TVs have tablet apps that, working
simultaneously with the TV, display the program guide, control the set and
offer additional information.
Wow! This takes TV viewing to the next level
- offering more options than ever before. BUT - just how SMART is your smart
TV? Will it only do what you "tell it" to do? Or will it watch you,
and your family, while you're watching it? According to Doctor Beet an LG Smart TV sent unencrypted data
over the internet! No problem you say? Doctor Beet's tests revealed that
the information was sent out each time he changed the channel. He also learned
that there is an option in the system settings to turn OFF the "collection
of watching" option (the default setting is ON) BUT the smart TV continued
to send viewing information even when the watching option was turned OFF.

Why, you ask, would LG, or any other
smart TV manufacturer, want my smart TV to monitor me? The answer, "Follow the
money". According to Doctor Beet, he "found a rather creepy corporate video" (that was removed but mirrored here) "advertising their data collection
practices to POTENTIAL ADVERTISERS. It's quite long but a sample of their
claims are as follows":
"LG Smart Ad analyses users favourite
programs, online behaviour, search keywords and other information to offer
relevant ads to target audiences. For example, LG Smart Ad can feature sharp
suits to men, or alluring cosmetics and fragrances to women.
Furthermore, LG Smart Ad offers useful and
various advertising performance reports. That live broadcasting ads cannot. To
accurately identify actual advertising effectiveness."

Doctor Beet did
come up with a creative way to block their collection of his data by blocking
the domains
on his router. This effectively prevents his smart TV from reaching
the server - unless, of course, it can create a Gmail account and then email
the info to the "home office".
Some TV displays
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Some TV displays comment