Netflix is facing a lawsuit from the state of Texas accusing the streaming giant of secretly collecting consumer data, sharing user information with advertising firms and using manipulative platform features designed to keep viewers watching.
The lawsuit, filed by Texas Attorney General Ken Paxton, alleges Netflix tracked users' viewing habits, devices, household networks, app activity and other behavioral information without properly informing consumers or obtaining meaningful consent.
According to the complaint, that data was allegedly shared with commercial data brokers and advertising technology companies, where it was combined with information from other platforms to create detailed consumer profiles.
"Netflix has built a surveillance program designed to illegally collect and profit from Texans' personal data without their consent, and my office will do everything in our power to stop it," Paxton said.
He added: "Netflix is not the ad-free and kid-friendly platform it claims to be. Instead, it has misled consumers while exploiting their private data to make billions."
The lawsuit goes further by claiming Netflix's streaming platform is primarily built around user monitoring rather than entertainment itself. "In reality, streaming content is merely a means to Netflix's true end: studying users," the complaint states.
"The company uses every possible interface-TV, phone, tablet, console-as a Trojan horse behavioral sensor to log granular 'events,'" the filing continues.
Texas is also challenging Netflix's autoplay feature, arguing it is intentionally designed to manipulate viewing behavior and increase compulsive use, particularly among children. The lawsuit seeks to force Netflix to disable autoplay by default on children's profiles and requests additional civil penalties and injunctive relief under the Texas Deceptive Trade Practices Act.
Netflix rejected the allegations and said the lawsuit misrepresents the company's practices. A spokesperson told Politico: "Respectfully to the great state of Texas and Attorney General Paxton, this lawsuit lacks merit and is based on inaccurate and distorted information."
The spokesperson added: "We look forward to addressing the Texas Attorney General's allegations in court and further explaining our industry-leading, kid-friendly parental controls and transparent privacy practices."
