Texas Files Lawsuit Against Netflix Over Allegations of Data Misuse

On Monday, Texas announced it is suing Netflix, claiming the streaming giant is engaging in spying on children and other consumers. The lawsuit accuses Netflix of collecting user data without consent and creating an addictive environment on its platform.

The state asserts that Netflix has misled consumers by stating it does not collect or share user data, when, in reality, the company tracks and sells information about viewers’ habits and preferences to data brokers and ad tech firms.

According to Texas Attorney General Ken Paxton, Netflix’s strategy is clear: keep families and children captivated by their screens, gather data while they’re watching, and then turn that data into profits.

“When you watch Netflix, Netflix is watching you,” the lawsuit emphasizes.

The complaint references comments made by former CEO Reed Hastings in 2020, where he claimed, “We don’t collect anything,” amid growing concerns over data privacy among major tech companies.

Netflix is also accused of employing “dark patterns” to keep users engaged, including autoplay features that automatically start a new show following another.

Paxton asserted that Netflix has established a “surveillance program” aimed at collecting personal data from Texans unlawfully. He stated that his office is committed to halting this practice.

Under Texas’s False Trade Practices Act, Paxton is seeking an injunction to stop Netflix from its current practices, including the default autoplay feature on children’s profiles, and aims to secure civil penalties against the company.

Netflix has yet to provide a comment as inquiries continue.