Diagnosis
Manufacturing oils or a stray plastic film are burning off the heating element. This is common in the first few uses but should not persist.
How to Fix It
For a new unit: run it empty at 400°F for 20-25 minutes in a well-ventilated area. The smell and smoke should dissipate. For an older unit: unplug, cool, and inspect the cavity for any melted plastic (like a bread tag) or excessive, burnt-on grease drippings.
If That Didn't Work
The smoke could be from oil dripping onto the heating element from a previous cook. Clean the entire cavity, especially the top where the heating element is, with a damp cloth after it’s completely cool.
Heads Up
Never use aerosol cooking spray directly into the basket. The propellants leave a sticky residue that burns and smokes. Use an oil mister with pure oil instead.