Texas Sues Netflix Over Alleged Spying on Children, ‘Addictive’ Platform Design

Netflix has been sued by the state of Texas after Attorney General Ken Paxton accused the streaming giant of secretly collecting users’ data without consent and designing its platform to keep viewers addicted.

The lawsuit, filed on Monday, alleges that Netflix misled consumers for years by claiming it neither collected nor shared user data, while allegedly tracking viewers’ habits and preferences and selling the information to commercial data brokers and advertising technology firms.

Texas also accused the Los Gatos, California-based company of using so-called “dark patterns” to encourage prolonged viewing, including an autoplay feature that automatically starts a new programme when another ends.

A Netflix spokesperson said the company intends to contest the allegations in court.

“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 said in a statement. “Netflix takes our members’ privacy seriously and complies with privacy and data protection laws everywhere we operate.”

The complaint forms part of a wider wave of legal action against major technology and social media companies accused of quietly tracking users and selling consumer data to third parties for advertising purposes.

Texas cited comments made in 2020 by Netflix co-founder and chairman Reed Hastings, who reportedly said, “we don’t collect anything”, while contrasting Netflix’s approach with companies such as Amazon, Meta and Google.

According to the complaint, “Netflix’s endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetise the data for a handsome profit.” The filing also states: “When you watch Netflix, Netflix watches you.”

Texas alleges that the company’s conduct violates the Texas Deceptive Trade Practices Act. The state is seeking an order requiring Netflix to delete any data allegedly collected unlawfully, stop using such data for targeted advertising without consent, and pay civil penalties of up to $10,000 per violation.

Paxton, a Republican, is currently running for the U.S. Senate against incumbent Republican Senator John Cornyn.

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