Texas Sues Netflix Over Alleged User Surveillance and Addictive Design
Texas has filed a major privacy lawsuit against Netflix, BBC Business reported Monday, alleging the streaming giant secretly gathered vast quantities of behavioural data from users, including children, without their knowledge or consent.
Texas AG Takes Aim at Netflix
Texas Attorney General Ken Paxton filed the complaint, accusing Netflix of building a covert data-collection operation at odds with its public image. The lawsuit claims Netflix logged billions of individual user interactions, tracking everything from content clicks to how long viewers lingered on thumbnails. Paxton’s office described the company as having effectively “spied” on Texans while publicly positioning itself as a privacy-respecting alternative to ad-driven Big Tech platforms.
The filing quotes former Netflix chief Reed Hastings as having said publicly in 2019 and 2020 that the company did not collect or monetise user data. The suit contends Netflix did the opposite, deploying “addictive” features like auto-playing content to maximise time on screen while quietly harvesting the resulting behavioural data.
From 2022, the lawsuit alleges, Netflix began sharing that data with commercial brokers to generate additional revenue streams worth billions of dollars.
Background: A Privacy Promise Allegedly Broken
Netflix built much of its subscriber proposition on a straightforward pitch to users, pay a monthly fee and avoid the surveillance-style advertising model common across social media. The Texas filing argues that pitch amounted to deliberate deception, with subscribers effectively paying to escape the very tracking system Netflix was allegedly constructing behind the scenes.
Paxton’s office contends the behaviour violates the Texas Deceptive Trade Practices Act, which prohibits false or misleading conduct in commerce. The state is seeking a court order compelling Netflix to delete all data allegedly collected without consent, halt targeted advertising using that data, and disable auto-play by default on children’s profiles.
Netflix Pushes Back
Netflix flatly denied the allegations. A company spokesperson, speaking to Reuters, called the lawsuit meritless and said it rested on inaccurate and distorted information. The company said it takes member privacy seriously and operates in full compliance with applicable data protection laws across all its markets.
The case lands amid growing regulatory and legal pressure on platforms whose design choices keep users engaged for longer. A recent California ruling found Meta and YouTube could face liability over addictive platform features, and legal experts say that precedent may encourage similar actions across other states.
The European Union has separately warned TikTok over comparable design concerns, signalling that algorithmic engagement tactics are drawing sustained scrutiny from regulators on both sides of the Atlantic.