Texas has filed a lawsuit against Netflix, accusing the streaming giant of spying on children and designing an addictive platform. Attorney General Ken Paxton alleges that Netflix falsely claimed it did not collect or share user data while actually tracking and selling viewing habits to advertisers, generating billions in revenue.
Allegations of Deceptive Practices
The lawsuit, filed in a state court in Collin County, Texas, asserts that Netflix used dark patterns such as autoplay features to keep users engaged. Paxton stated, 'For years, Netflix's leadership told the world it had zero interest in advertising, but once it stockpiled data, it built an ads business mirroring what it once attacked.'
The complaint quotes former CEO Reed Hastings saying in 2020, 'We don't collect anything,' to distinguish Netflix from tech rivals. However, Texas claims Netflix's endgame is to get children and families glued to screens, harvest data, and monetize it for profit.
Legal Precedent and Context
This lawsuit follows a recent California jury verdict finding Meta and YouTube liable for designing addictive products harming young people. Texas cites this as precedent. Paxton seeks to force Netflix to purge illegally collected data, obtain user consent before using data for targeted ads, and pay civil fines of up to $10,000 per violation.
Netflix has not responded to requests for comment. Paxton, a Republican, is running for the US Senate, challenging incumbent Senator John Cornyn.
