Texas Sues Netflix Alleging Deceptive Data Practices

Texas sued Netflix on Monday, accusing the streaming company of spying on children and designing its platform to be addictive. Ken Paxton, the Texas attorney general, said Netflix has for years falsely represented to consumers that it did not collect or share user data.

In reality, the complaint alleges, the company tracked and sold viewers’ habits and preferences to commercial data brokers and advertising technology companies. The practices generated billions of dollars a year for Netflix, according to the lawsuit filed in state court.

The suit centers on allegations that Netflix’s platform exploits young users through addictive design features while misleading families about privacy protections. Paxton’s office described the company’s data practices as deceptive and harmful to minors.

This legal action marks the latest clash between state regulators and major technology platforms over children’s online safety and data privacy. Texas officials said the complaint draws on evidence of long-standing discrepancies between Netflix’s public statements and its actual operations.

The lawsuit seeks unspecified penalties and injunctive relief to change the company’s practices. Netflix had not publicly responded to the filing as of Monday evening.

State attorneys general have increasingly targeted streaming services and social media companies over concerns about youth mental health and data handling. The Texas case focuses specifically on alleged misrepresentations about data collection and sharing.

Paxton’s complaint argues that Netflix’s design choices prioritize engagement metrics over user well-being, particularly for younger viewers. The filing claims these practices violate state consumer protection laws. The suit arrives amid growing scrutiny of recommendation algorithms and their effects on children.

Texas is one of several states pursuing litigation against technology firms on similar grounds.

According to the complaint, Netflix told consumers it refrained from collecting or sharing personal viewing data. Investigators allege the company did both extensively, profiting from the resulting information sold to third parties. The lawsuit further contends that the platform was intentionally engineered to foster addiction, with particular impact on child users.

Officials cited internal practices that allegedly maximized screen time at the expense of healthy usage patterns. No specific financial figures beyond the broad “billions of dollars a year” estimate were detailed in initial reports of the filing. The case will likely turn on evidence of alleged discrepancies between public privacy policies and actual data flows.