Consumers are filing complaints against compulsory commercials on television as Chinese manufacturers seek an alternative source of revenue to subsidize costs.

Users are forced to watch up to 30 seconds of unskippable ads every time they turn on the device, before they can access other programs. Out of 12 popular brands in China, Xiaomi, Skyworth, Hisense and TCL all have mandatory ads incorporated into their television models, which are not necessarily specified in the product information.

Yang, a Hongkonger who purchased a 55-inch Xiaomi TV for HK$2,700 (US$348), has to sit through 30 seconds of mostly car commercials every time he switches his television on. “It is very frustrating,” he said.

According to Chinese media outlet, The Paper, a Chinese consumer filed a complaint to Xiaomi, but he was denied a refund as the issue does not involve the quality or functionality of the purchased product. He has taken his complaint to the regulator in Guangzhou and planned to sue the firm if the situation remains.

Due to strong market competition, a 40-inch television only sells for around 2,000 to 3,000 yuan (US$307 to US$461) in China, even though the costs of the screen and delivery often exceed that of smartphones, said Francis Fong, honorary president of the Hong Kong Information Technology Federation. Manufacturers have therefore developed a new model, introducing compulsory commercials and subsidizing the costs with the additional advertising revenue, he added.

Smart TVs may also utilize personal data collected from users to customize the advertisements, he added. In addition to turning off the built-in cameras on smart TVs, Fong reminded users to register on their device with a new email account in order to protect their personal privacy.

Computer security researcher Anthony Lai said smart TVs can collect data and analyze the habits of the users through multiple ways and display advertisements according to their preferences, such as which channels they watch, how much time they spend on TV and where their locations are.

Chinese marketing agencies revealed that placing commercials on television devices is far more expensive than advertising on other information platforms with the cost per thousand impressions at 45 to 50 yuan, compared to the usual 5 to 8 yuan.

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