LG Electronics is facing new criticism after embedding Microsoft Copilot—an AI chatbot that cannot be removed—into its OLED and RGB LED Smart TVs, amid growing concern over the company’s use of Automatic Content Recognition (ACR) technology to monitor consumer viewing habits.

Privacy advocates warn that Copilot’s integration into LG’s WebOS platform expands an already controversial data-collection ecosystem that tracks what Australians watch, search for, and display on their televisions without consent.

The Copilot integration, first announced by LG at the Consumer Electronics Show (CES) in January 2025, has now been deployed as a web-based shortcut built directly into TV firmware.

Users have no option to delete or disable the software. LG claims Copilot enhances the viewing experience, yet critics argue it functions as another data-gathering layer on top of WebOS, which already enables extensive consumer surveillance through ACR.

On social media platforms such as Reddit, tens of thousands of LG TV owners have voiced anger over what they describe as forced software installations and covert monitoring. Many users point to regulatory action already under way in the United States against LG, while questioning why Australian regulators have not acted with similar urgency. LG has previously faced enforcement action from the Australian Competition and Consumer Commission over other consumer issues, further intensifying scrutiny.

Automatic Content Recognition lies at the heart of the controversy. Embedded in LG Smart TVs sold in Australia, ACR technology continuously monitors on-screen activity across free-to-air TV, streaming services, gaming consoles, mobile devices, and computers connected via HDMI. The technology captures rapid audio and visual snippets—often in fractions of a second—to create a digital “fingerprint” that identifies exactly what content is being viewed.

Once matched against LG’s content databases, this information is used to build detailed consumer profiles. Analysts claim the data harvested through ACR is so valuable that it can generate more revenue than the sale of the televisions themselves.

ACR technology—sometimes described as “watchware”—first gained attention in 2011 when Shazam demonstrated content-recognition software for TVs. Since then, LG has expanded ACR into a multibillion-dollar global data business. In 2017, similar practices led the US Federal Trade Commission and the New Jersey Attorney General to fine Vizio A$3.3 million for secretly collecting ACR data from 11 million consumers without consent.

According to US legal filings, LG and other TV manufacturers—including Samsung, Sony, Hisense, and TCL—monetise ACR data by selling it to advertisers and data brokers. This data includes not only TV programs, but also YouTube videos, video calls, security camera feeds, photos shared via Apple AirPlay or Google Cast, and activity from laptops, gaming consoles, and streaming devices such as Apple TV, Amazon Fire TV, Google Chromecast, and Foxtel’s Hubbl.

ACR can continue capturing data even when a television is offline. If the TV later reconnects to the internet—for example, during a firmware update—the stored information can be uploaded and shared.

Privacy experts warn that LG’s WebOS-based ACR system can capture or infer sensitive personal attributes, including race, gender, religious beliefs, and political preferences. Such information falls under “sensitive personal data” categories regulated by Australian privacy law.

In July, LG Ad Solutions—the division responsible for monetising ACR data—formally expanded into Australia with the appointment of Alex Blundell Jones as Commercial Director. The company promotes its ability to deliver highly precise advertising targeting, allowing brands to retarget LG TV owners with personalised ads and marketing messages. LG is also believed to monetise warranty registration data as part of its broader data strategy.

As LG pushes Copilot deeper into Australian living rooms, consumer advocates argue the issue is no longer just about smart features, but about transparency, consent, and whether Australians are being unknowingly turned into data products by the televisions in their homes.