Texas Files Lawsuit Against Netflix for Alleged Child Surveillance and Addiction Inducement

On Monday, Texas Attorney General Ken Paxton filed a lawsuit against Netflix Inc., accusing the streaming giant of collecting data from children and other consumers without consent to conduct surveillance and deliberately designing its platform to foster addiction.

Texas asserts that for years, Netflix has falsely claimed to consumers that it does not collect or share user data, while in reality, it tracks and sells viewers' habits and preferences to commercial data brokers and advertising technology firms, generating billions of dollars in annual profits.

The Los Gatos, California-based company is also accused of covertly employing "dark patterns" to retain users, including features such as auto-playing new episodes when a series concludes.

A Netflix spokesperson stated that the company plans to address these allegations in court.

"We respect the great state of Texas and Attorney General Paxton, but this lawsuit is without merit and based on inaccurate and misrepresented information," the spokesperson said in a statement. "Netflix values the privacy of our members and adheres to the privacy and data protection laws applicable in all jurisdictions where we operate."

Numerous companies, including social media platforms and other entities with substantial online operations, have faced lawsuits alleging covert tracking of users and selling the obtained data to third parties, who then utilize it for advertising purposes.

The Texas complaint cites a 2020 statement by Netflix co-founder and Chairman Reed Hastings: "We don't collect any data." At the time, he sought to differentiate Netflix's data collection practices from those of Amazon, Facebook, and Google.

"Netflix's ultimate goal is simple and profitable: to addict children and families to screens, collect data while they are addicted, and then monetize that data for substantial profit," stated the petition filed in Collin County state court near Dallas.

"When you watch Netflix, Netflix is watching you," the petition added.

Paxton stated that Netflix's alleged surveillance activities violate the Texas Deceptive Trade Practices Act.

He demands that the company delete illegally collected data, refrain from using data for targeted advertising without user consent, and pay civil penalties of up to $10,000 per violation.

Paxton, a Republican, is currently campaigning for a U.S. Senate seat, challenging incumbent Republican Senator John Cornyn.