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People were driving around with 12v portable B&W TVs in the front seat in the 70s, (I think "taxi driver" features just such a situation) so it's possible the laws had appeared around the time this product did.

Looks like NY's law against TV use in cars dates to 1974, Texas's to 1995.

If you re-read the ad copy included in the article, you'll notice that it had a lockout function that disabled the screen when the engine was on (though you could still listen to the TV sound output).

Massachusetts passed a law against using your phone while driving (other than one touch button presses) something like 4 years ago. I'd be shocked if this screen was illegal in the 80's.