Telly's free 55-inch 4K dual-screen TV sets are set to arrive at users' homes this week -- but of course, there's a catch. From a report: The start-up, which plans to ship some 500,000 free, ad-supported TVs in 2023 in the U.S., is calling the initial wave a "public beta program." The company says the new Telly households represent a diverse cross-section of the U.S. population, although the initial user base overindexes on education level and household income -- and also skews toward Gen Zers and millennials. According to Telly, more than 250,000 people have signed up to receive a free TV set, which displays an always-on, rotating ad unit on a 9-inch-high second screen situated below the main 55-inch one. Each unit also includes a free Chromecast with Google TV adapter. The bulk of the half-million TVs will go out in the fourth quarter of 2023, Telly chief strategy officer Dallas Lawrence said: "We think there's no better Black Friday deal than free."

To receive the free TV, Telly users must submit detailed demographic info (such as age, gender and address), as well as purchasing behaviors, brand preferences and viewing habits, and they must agree to let their data be used for serving targeted ads. Telly's TVs include a sensor that detects how many people are in front of the screen at any given moment. So what's the catch? Telly users must agree to several conditions under the company's terms of service. If someone doesn't abide by the TOS, Telly reserves the right to demand the TV be shipped back -- otherwise, it will charge up to $1,000 to the credit card associated with a given account. Also read: Telly, the 'Free' Smart TV With Ads, Has Privacy Policy Red Flags.