Texas Attorney General Ken Paxton has sued Netflix, alleging the streaming service collected and monetized user data—including children's viewing habits—without consent. The lawsuit, filed on May 11, claims Netflix violated the Texas Deceptive Trade Practices Act by tracking and logging sensitive behavioral data while marketing itself as an ad-free, family-friendly platform.
Netflix denies the allegations, calling the lawsuit "based on inaccurate and distorted information." The company states it complies with privacy laws and takes user privacy seriously. The lawsuit also highlights Netflix's auto-play feature, alleging it is designed to keep users, including children, engaged for longer periods.
The Texas Attorney General's office claims Netflix recorded billions of data points about user behavior, despite previous statements from former CEO Reed Hastings that the company did not collect or monetize user data. The lawsuit further alleges that Netflix shared this data with commercial brokers to generate revenue.
The case raises questions about consumer data privacy and the enforcement of state-level consumer protection laws. Ohio, for example, has similar laws but differs in how they are applied, with its Deceptive Trade Practices Act primarily targeting business competition rather than individual consumer harm.