Netflix Sued By Texas For Allegedly Spying On Children

Authored by Mary Prenon via The Epoch Times,

Global video streaming service Netflix has been sued by the Texas attorney general’s office for allegedly collecting consumer data from children and adults without their knowledge or consent.

In a May 11 statement, Texas Attorney General Ken Paxton accused Netflix of spying on consumers by intentionally tracking and logging their viewing habits, preferences, devices, household networks, and other sensitive behavioral data.

The litigation claims that although the mega-entertainment platform purported to refrain from collecting or sharing user data, it, in fact, recorded and monetized “billions of behavioral events.”

According to Paxton, every consumer interaction became a “data point,” which revealed information about the user, and tracking was then applied to both adults’ and children’s accounts and profiles.

“Netflix has built a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent, and my office will do everything in our power to stop it,” Paxton said in the statement.

“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.”

The company argues that the 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,” a Netflix spokesperson told The Epoch Times in an email statement.

“We look forward to addressing the Texas Attorney General’s allegations in court and further explaining our industry-leading, kid‑friendly parental controls and transparent privacy practices.”

Paxton further accused Netflix of disclosing the collected information to commercial data brokers and advertising tech firms to build detailed consumer profiles.

“Netflix users’ data is essentially shopped across Big Ad Tech’s shadowy network,” the statement reads.

In addition, the lawsuit argues that Netflix designs its platform to be addictive, using features that coax users into following certain actions. It cites the autoplay function, which offers a continuous content stream intended to keep users watching for an extended period.

The litigation described Netflix’s actions as a “behavioral-surveillance program of staggering scale.”

“This program requires getting Texans and their children glued to the screen and then extracting every possible piece of data about them while they are there,” it states.

The end game, the lawsuit claims, is for Netflix to earn even more revenue from harvesting and selling consumer data. It notes that between 2018 and 2026, Netflix’s annual revenue grew from nearly $15 billion to more than $50 billion.

“Netflix’s explosive financial growth reflects a deliberate choice to cash in on the trust it spent years cultivating under false pretenses,” the case states.

It also claims that Netflix provided its users’ data to large commercial brokers such as Experian and Acxion, and partnered with ad-tech platforms including Google Display & Video 360 and The Trade Desk, so that its user data could be merged with information collected off the platform.

The lawsuit intends not only to stop the alleged unlawful collection and disclosure of user data, but also to hold Netflix accountable under the Texas Deceptive Trade Practices Act. In addition, the litigation is seeking injunctive relief, civil penalties, and that Netflix be required to disable its autoplay function on children’s profiles.

Paxton is requesting a trial by jury.