LG Delivers Shock Profit Slump As Regulators Move In On Their Questionable Data Capture Business

LG Electronics’ Australian operation has declined to disclose the extent of the downturn in its local television business, following comments from its South Korean parent at CES that weak consumer demand — particularly for TVs — was a major factor behind an expected quarterly loss.

The company is reportedly set to post a loss of approximately A$169 million for the most recent quarter, traditionally one of the strongest periods for consumer electronics manufacturers. LG has been steadily losing ground to arch rival Samsung in the OLED TV segment and continues to struggle to remain competitive in the LED market.

While LG faces mounting pressure, Samsung Electronics is moving in the opposite direction. The company expects its fourth-quarter operating profit to have nearly tripled to a record A$20.64 billion, buoyed by strong product demand and a booming semiconductor division driven by surging AI-related memory requirements.

At CES, it became increasingly clear that LG faces further challenges in 2026 as Chinese manufacturers aggressively enter the premium TV space. New RGB LED televisions from Chinese brands threaten both LG and Samsung, with LG sourcing their LED TVs from rival TCL — an uncomfortable dependency that could further compress margins.

LG has increasingly positioned its future around non-hardware businesses, including appliance subscriptions, direct-to-consumer sales, and digital platforms that compete directly with traditional retailers, particularly in Australia.

However, growing scrutiny surrounds LG’s data practices. Of increasing concern is the company’s monetisation of consumer data collected from televisions and home appliances — data derived from people’s daily viewing habits and personal home environments.

At CES, LG announced upgrades to its WebOS platform and expanded use of Automatic Content Recognition (ACR) technology. This content-fingerprinting software identifies what consumers are watching—and in some cases doing—inside their homes, often without explicit consumer awareness.

Audio and visual samples captured from displays are transmitted back to LG, aggregated, and sold to third parties, generating hundreds of millions of dollars in revenue.

New CEO Lyu Jae-chul said at CES that LG plans to increase investment in growth businesses, using part of the US$1.3 billion raised from the October IPO of its Indian subsidiary to expand software services, subscription rentals, and data-driven platforms.

But that strategy may now be facing a reckoning.

Following CES, consumer groups and regulators in multiple regions — including Australia and parts of Europe — signaled they are reviewing the legality and transparency of embedded ACR technologies. Privacy advocates have called for stricter disclosure rules and opt-in requirements, while lawmakers are openly questioning whether current data practices violate consumer protection laws.

To the best of my knowledge (though I am a few years removed from the Chinese manufacturing side), Yes, they all do it.

If you want privacy in buying a phone, stick with Apple.

If you want privacy in buying a car, better check. It changes all the time.

If you want privacy in buying a modern appliance (see the CES reviews of the Samsung AI refrigerator), not sure anymore. I have been buying rebuilt appliances, not new.

If you want to buy a privacy centered TV, check into videos on unplugging AND blocking your TVs “phone home” features with a Pi-hole device.

And don’t even put privacy, and Amazon or Meta in the same sentence.

>However, growing scrutiny surrounds LG’s data practices. Of increasing concern is the company’s monetisation of consumer data collected from televisions and home appliances

TVs do not get a data connection. TVs get a power connection and an HDMI from an AppleTV 4k streaming box. Apple spies on you considerably less than LG/Samsung/Google/Amazon.

The other thing this does is give you a consistent UI/UX across all TV brands. You spend less time fumbling through menus.

I setup a new Vizio TV last summer and was really disgusted that it forced you to register online before you could use the TV. You couldn’t bypass it and just use a HDMI input. I’m sick of “smart” everything. It just means you’re being spied on and having your data sold. The best option is to setup your own computer and connect it to the screen with a wireless keyboard and mouse so you can type fast and block ads using a browser.

TCL is not associated with LG in any way, other than some stolen IP and maybe some contract component manufacturing in the past.

LG seems to have consistently good technology across their TV lines.

TCL is a Chinese brand that used to manufacture for many name brands, until it had borrowed enough manufacturing know how to build their own device.

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