Texas Sues Netflix Over Alleged Data Collection and Addictive Design
Texas has filed a major privacy lawsuit against Netflix, BBC Business reported Monday, accusing the streaming giant of secretly harvesting user data and deploying addictive platform design to trap viewers.
Texas AG Targets Netflix Over Surveillance Claims
Texas Attorney General Ken Paxton alleges Netflix recorded billions of user interactions without meaningful consent. The complaint argues the company tracked what users clicked, what they lingered on, and for how long. That behavioral data was then allegedly shared with commercial data brokers. Paxton’s office says this generated substantial advertising revenue for the company.
The filing also draws a sharp contrast between Netflix’s public messaging and its alleged internal practices. Former Netflix chief Reed Hastings reportedly stated in 2019 and 2020 that the platform did not collect or monetise user data the way other tech companies did. The lawsuit contends Netflix built the very surveillance infrastructure it publicly disavowed.
Netflix has firmly denied the allegations. A company spokesperson told Reuters the lawsuit “lacks merit and is based on inaccurate and distorted information,” adding that the company complies with privacy laws in every market it operates.
A Promise of Privacy That Was Never Kept, Texas Argues
The core of Paxton’s case is a broken consumer bargain. Netflix marketed itself as a paid, ad-free alternative to data-hungry platforms. Subscribers, the filing argues, trusted that pitch and paid monthly fees expecting freedom from tracking. According to Texas, Netflix exploited that trust while quietly building extensive data profiles on users, including children.
From 2022 onward, the complaint alleges, data extracted from children and families was shared externally to help drive billions in revenue. The lawsuit calls for Netflix to delete all data “deceptively collected” from Texans, stop processing that data for advertising, and disable auto-play by default on children’s profiles.
Paxton’s office says Netflix violated the Texas Deceptive Trade Practices Act, which bars false or misleading conduct in commerce.
Platform Design Under Growing Legal Pressure
The case lands as scrutiny over addictive platform features intensifies nationally. A recent California ruling found Meta and YouTube could be held liable for harmful design choices, potentially opening the door to similar state-level complaints across the country. Regulators in the European Union have already ordered TikTok to modify its algorithm-driven features or face heavy financial penalties.
Netflix said it intends to contest the Texas action in court.
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