Walmart’s potential acquisition of Vizio, a leading smart TV brand, has set the stage for a new act in the retail giant’s digital drama. But behind the scenes, questions linger: Is this move purely about expanding Walmart’s advertising capabilities, or does it open a new chapter in surveillance?
The Vizio Spying Saga
Vizio’s Past Missteps: In 2017, Vizio faced scrutiny for secretly collecting user data without consent. Their smart TVs, equipped with automated content recognition (ACR) software, tracked everything viewers watched, down to the second. The US Federal Trade Commission (FTC) slapped Vizio with a $2.2 million fine.
Walmart’s Patent Play: Now, Walmart eyes Vizio, aiming to acquire the TV brand for over $2 billion. But this isn’t just about affordable smart TVs. Walmart’s patent history reveals audio surveillance technology that could essentially spy on cashiers and customers. The proposed system would collect audio data in stores, focusing on details like item scanner beeps and bag rustling. The intent? Monitoring employee performance and improving the shopping experience.
Listening to the Frontend: Walmart’s patent filing, intriguingly named “Listening to the Frontend,” hints at a future where audio sensors track conversations, greetings, and even content. While Walmart claims the technology won’t analyze words, the fine print leaves room for evaluating employee recordings based on conversation content.
Biosecurity Implications
Privacy Concerns: Shoppers won’t expect their conversations to be recorded. Such surveillance raises privacy concerns, especially if recordings are stored indefinitely.
Legal Gray Areas: Some states have two-party consent laws, which prohibit recording audio without consent. Walmart operates nationwide, including in states with such laws.
The Unseen Checkout Counter
As Walmart dances with Vizio, the spotlight shifts from affordable TVs to the unseen checkout counter. Will this acquisition amplify Walmart’s surveillance symphony? Only time—and perhaps the rustling of bags—will tell.
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Walmart has already faced accusations related to surveillance.
Employee Surveillance by Lockheed Martin:
Walmart allegedly hired defense contractor Lockheed Martin to conduct surveillance on employees associated with the rights group OUR Walmart. The company reportedly received assistance from the FBI in this endeavor.
Spying on Investors and Critics:
At least three investor groups demanded a formal apology from Walmart and copies of any material collected about them. Critics have also called for an investigation into alleged surveillance activities by the company.
Monitoring Money Transfer Services:
The Federal Trade Commission (FTC) filed a lawsuit against Walmart regarding its money transfer services. While Walmart has saved consumers billions by offering low-fee money transfer services, the FTC alleges that the company should be held liable for actions by third-party criminals using these services.