A California federal court has allowed two privacy claims against Sony to proceed in litigation over allegations that its smart TVs used automatic content recognition technology to collect viewers’ viewing data and share it with third parties. The court dismissed 15 of the 17 claims, with leave to amend, but found the alleged collection and broad dissemination of sensitive viewing information sufficient at this stage to support claims for invasion of privacy and public disclosure of private facts.

The ruling also rejected Sony’s effort to compel arbitration, concluding that the limited warranty included with the TVs did not give consumers fair notice that using the device could bind them to arbitrate claims. For companies deploying connected-device technologies, the decision is a reminder that privacy litigation can turn on both the details of what data is collected and shared and the clarity of the notice and assent process. The court’s conclusions remain tied to the allegations and procedural posture of this case; most claims were dismissed, and the plaintiffs were permitted to amend. Read the full decision.