Texas Attorney General Sues Netflix Over User Data Collection and Platform Design

Texas Attorney General Ken Paxton filed a lawsuit against Netflix in state court in Collin County on Monday. The suit accuses the streaming service of tracking and logging users' viewing habits, preferences, devices, household networks, application usage and other behavioral data without consent.

The filing states that Netflix built what it calls "surveillance machinery" that operates through both adult and children's profiles.

It further alleges the company designed its platform with features such as autoplay to encourage continued viewing. "Netflix is not the ad-free and kid-friendly platform it claims to be. Instead, it has misled consumers while exploiting their private data to make billions," Paxton said in a statement.

A Netflix spokesperson said the lawsuit lacks merit and is based on inaccurate and distorted information. The spokesperson added that the company takes members' privacy seriously and complies with privacy and data-protection laws everywhere it operates. The 59-page lawsuit alleges Netflix portrayed itself as a kid-friendly and ad-free alternative but developed a behavioral-surveillance program.

It states the company has more than 325 million subscribers worldwide and offers both ad-supported and ad-free tiers in the United States. The ad-supported option launched in late 2022. The suit accuses Netflix of violating the Texas Deceptive Trade Practices Act.

Paxton is seeking a jury trial, a permanent injunction to halt the data collection practices, and civil penalties of up to $10,000 per violation. The filing notes that similar autoplay features exist on other major streaming services including Disney+ and HBO Max. Paxton's action follows legal actions against other technology companies over data practices and platform design.

In late March a Los Angeles jury found Meta and Google's YouTube negligent in the design or operation of their social media platforms. Representatives for those companies said they disagreed with the verdict and planned to appeal. Last month Paxton launched an investigation into major music streaming platforms including Spotify and Apple Music over alleged payola practices.

Those companies did not immediately respond to requests for comment on the Netflix suit. Paxton is running for the Republican nomination for U.S. Senate in Texas.