Blogger says smart TVs send information on home viewing habits back to the company without consent.
LG Electronics Inc. said its handset business sank into the red as it cut prices and spent more on marketing.
The languishing TV business masked a recovery the electronics company made in mobile phone sales.
LG's new smartphone with a full high-definition screen will go on sale in South Korea this week.
Europe slapped the phone maker with a $664 million fine for price fixing.
China joined the United States and Europe in a crackdown on the industry.
The company beat Sony and Samsung in its promised product announcement.
LG will attempt to revive its lackluster customer base by launching its Optimus G smartphone in South Korea next week to be available in Japan and the U.S. in the coming months.
