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Texas files lawsuit against Netflix
The state of Texas has accused Netflix of unlawfully collecting personal data from users, including children, and employing manipulative design tactics to prolong viewing sessions. The lawsuit, filed by Attorney General Ken Paxton, claims the streaming service misled consumers about its data practices while secretly gathering billions of behavioral data points.
Allegations of deceptive practices
According to the complaint, Netflix portrayed itself as a privacy-conscious alternative to other tech giants, with former CEO Reed Hastings stating in 2019 and 2020 that the company neither collected nor monetized user data for advertising. However, the lawsuit argues Netflix systematically tracked user interactions-such as clicks, viewing duration, and content preferences-while deploying features like auto-play to maximize engagement.
The filing further alleges that in 2022, Netflix began sharing this data with commercial brokers, generating substantial revenue from information harvested from both adults and children. Texas officials contend this violated the state's Deceptive Trade Practices Act, which prohibits misleading business conduct.
Netflix denies wrongdoing
In response, Netflix called the lawsuit "meritless" and based on "inaccurate and distorted information." A company spokesperson told Reuters that Netflix adheres to privacy laws globally and takes user data protection seriously. The streaming giant confirmed it will 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. Netflix takes our members' privacy seriously and complies with privacy and data protection laws everywhere we operate."
Netflix spokesperson
Demands and broader industry concerns
Texas is seeking a court order to force Netflix to delete data allegedly collected without consent, halt targeted advertising based on this data, and disable auto-play by default for children's profiles. The case emerges amid growing scrutiny of platform design features-such as auto-play and infinite scroll-accused of fostering addictive behavior.
Legal experts note that a recent California ruling holding Meta and YouTube accountable for addictive design could pave the way for similar lawsuits against other tech companies. The outcome of Texas's case may set a precedent for how streaming services handle user data and engagement tactics.
What's next
Netflix has not yet responded to the BBC's request for comment. The lawsuit will proceed through Texas courts, with potential implications for data privacy regulations and platform accountability nationwide.
