Your smart TV is quietly recording what's on screen every half second and selling that data, and regulators are finally cracking down — bad news for privacy, good news if you live in Texas.

• Samsung, LG, Sony, Hisense, and TCL got sued by Texas for using "Automated Content Recognition" to fingerprint everything shown on screen, from cable to DVDs to game consoles, and sell the data.
• Samsung and LG already settled, agreeing to ask permission and let people opt out; the other three are still fighting.
• An independent teardown of a high-end LG TV found it still tracks viewing even when used as a dumb monitor, keeps its microphone live for seconds after you stop talking, and has security holes that could let it be hijacked.
• TV makers do this because selling TVs barely makes money — the real profits come from advertising and data, which is why Walmart bought TV maker Vizio just for its ad platform.
• The Texas settlements only protect Texans; everyone else's TV keeps collecting and selling the same data.

Outlook: Expect more states to file similar lawsuits, but until federal rules exist, most TV owners outside Texas have no real opt-out protection.