Texas accuses Netflix of spying on users, including children

Texas is suing Netflix over alleged data collection and addictive design features, claims the streaming company rejects as meritless.

Texas has sued Netflix, accusing the streaming company of collecting data from adults and children without proper consent and using design features that keep viewers watching for longer.

The lawsuit, filed Monday by Texas Attorney General Ken Paxton, alleges that Netflix recorded and monetized vast amounts of information about how people used the platform while presenting itself as less intrusive than other technology companies. Netflix rejected the allegations and said it would challenge them 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,” a Netflix spokesperson told the BBC. “Netflix takes our members' privacy seriously and complies with privacy and data protection laws everywhere we operate.”

The complaint says Netflix tracked activity such as what users clicked on, what they lingered over and how long they spent engaging with content. Paxton’s office said: “Every interaction on the platform became a data point revealing information about the user.”

The state also accuses Netflix of using “addictive” design tools, including auto-play, to keep users on the service. The filing says the company began using data gathered from children and families in 2022 and shared information with commercial data brokers to support advertising revenue.

The case centers in part on statements attributed in the complaint to former Netflix chief executive Reed Hastings in 2019 and 2020, when the filing says the company portrayed itself as not collecting or monetizing user data in the way other large technology firms did.

Texas says the conduct violated the Texas Deceptive Trade Practices Act, which bars false, deceptive or misleading acts in commerce. The attorney general is asking a court to require Netflix to delete data allegedly collected deceptively from Texans, stop processing their data for targeted advertising and turn off auto-play by default on children’s profiles.

The lawsuit lands as technology and entertainment platforms face growing scrutiny over features such as auto-play and infinite scroll, which critics say can encourage unhealthy levels of use. The allegations have not been tested in court, and the next major step will be Netflix’s formal legal response.