Netflix is facing a lawsuit from Texas Attorney General Ken Paxton, a Republican, who accuses the streaming service of engaging in 'spying on Texans, including children, and collecting users' data without their knowledge or consent.'
Allegations of Deceptive Practices
The lawsuit, filed on May 11 and reported by Variety, claims Netflix violated the Texas Deceptive Trade Practices Act. It alleges that the company traded for years on the promise of an ad-free experience before introducing advertising in 2022. The filing quotes former Netflix CEO Reed Hastings stating in January 2020, 'We don’t collect anything. We’re really focused on just making our members happy, and we’re not tied up with all that controversy around advertising.'
Surveillance Machinery and Data Sharing
The State of Texas argues that 'Netflix sold subscriptions to its programming as an escape from Big Tech surveillance: pay monthly, avoid tracking. Texans trusted that bargain. Netflix broke it — constructing the very data-collection system subscribers paid to escape.' The lawsuit further claims that Netflix operates 'surveillance machinery' and shares collected data with advertisers and commercial data brokers like Experian and Acxiom.
Addictive Design and Autoplay
Additionally, the suit contends that Netflix intentionally designed its platform to be addictive, citing the 'autoplay' function that 'creates a continuous stream of content intended to keep users, including children, watching for extended periods of time.'
Netflix's Response
A Netflix spokesperson responded, stating: '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. 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.'
Political Context
Paxton is currently running for a U.S. Senate seat against incumbent Senator John Cornyn, also a Republican. The nominee will be determined in a runoff election on May 26. Meanwhile, Hastings recently announced he is stepping down as chairman of Netflix, a decision that comes amid a challenging period for the company as it seeks new growth avenues amid slowing sales and heightened competition, following the collapse of a potential merger with Warner Bros Discovery in February.
