Texas Sues Netflix Over Allegedly Spying On Their Users
Netflix is facing a major lawsuit in Texas after Attorney General Ken Paxton filed a lawsuit accusing the company of "spying" on its users. The complaint, filed on Monday in Collin County, alleges that Netflix has spent years secretly harvesting billions of data points from adults and children alike, despite marketing itself as a privacy-focused alternative to other Big Tech firms.
The lawsuit claims Netflix built "surveillance machinery" to track every click, linger, and viewing habit. According to the filing, this data was then sold to commercial brokers and advertisers to generate billions in revenue. "Texans trusted that bargain. Netflix broke it - constructing the very data-collection system subscribers paid to escape," the lawsuit states.
A central part of the state's argument focuses on how the platform keeps users engaged. Texas accused Netflix of using "dark patterns" and "addictive" design features, such as the autoplay function that triggers a new episode immediately after one ends, to keep families "glued to the screen."
The state argues this cycle is designed to maximize data extraction:
"Netflix’s endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetize the data for a handsome profit."
The complaint also highlights past statements from company leadership, quoting Chairman Reed Hastings as having said in 2020 that "we don't collect anything" to distinguish the service from competitors like Google and Meta. The lawsuit labels this a "years-long bait-and-switch."
Netflix has moved quickly to reject the accusations, and has vowed to fight the case in court. A spokesperson for the company stated:
"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."
The company further emphasized that it offers "industry-leading, kid-friendly parental controls" and transparent privacy policies.
Texas argues these practices violate the state's Deceptive Trade Practices Act, which prohibits misleading business conduct. If successful, the state is seeking:
- Civil penalties of up to $10,000 per violation.
- Data purging, requiring Netflix to delete all "deceptively collected" information from Texas residents.
- Design changes, such as forcing the company to turn off autoplay by default on children's profiles.
This legal action comes as Attorney General Paxton, who is currently running for the U.S. Senate, ramps up his scrutiny of digital platforms. He recently launched a separate investigation into music streaming services like Spotify and Apple Music over alleged "payola" schemes.
