How is this legal? Can't we sue them or get the FTC against them? This seems like a ridiculous amount of spying, even if their TOS says so. That seems like exploiting complexity of TOS to let them spy on everyone.

I'm pretty sure that these TVs won't respect WIFI passwords and if you enter a wifi password in once, it will just remember it even when you clear it, and it will try to connect to the internet that way.