Some interesting points in the comments:
For example: "Since you are in the UK, it may be worth forwarding this to the Information Commissioners Office: http://www.ico.org.uk/ and pointing out to LG that you have done so... It would be interesting to see how that might affect their next response.
If their data collection collects any personally identifiable information, they are subject to the UK Data Protection Act. That potentially means you can serve them with a Subject Access Request: http://www.ico.org.uk/for_the_public/personal_information"
Yep, hopefully they are breaking some laws here.
Heh. Like the cut of this guy's jib: "Please join me in (at the very least) hitting them on Twitter. @LGBlog @LGUS and @LGUK".
So, do we know what other Smart-TV manufacturers are also doing this yet?