Texas has filed a lawsuit against Netflix, alleging the streaming service is designed to be excessively addictive and that it unlawfully profits from users’ data, which the state claims is worth “billions” of dollars.
The lawsuit includes claims that the company collects information without proper knowledge or consent, with particular concern raised about children’s privacy. It also argues that elements of the platform’s design are intended to “manipulate” viewers through an interface the state describes as deceptively addictive.
“Netflix’s endgame is simple and lucrative,” the complaint reads. “Get children and families glued to the screen,harvest their data while they are stuck there, and then monetize the data for a handsome profit.
“When you watch Netflix, Netflix watches you,” it added.
Texas also alleges Netflix uses so-called “dark patterns” to keep people watching, pointing to features such as autoplay, where another episode or title starts automatically once a program ends.
Alongside broader demands, the suit seeks changes that would include disabling autoplay on children’s profiles. It also asks the court to halt what it calls the “unlawful collection and disclosure of user data” and to obtain “other injunctive relief and civil penalties.”
The filing follows comments made by Netflix CEO Reed Hastings during a 2020 earnings call, when he said “we (Netflix) don’t collect anything,” while discussing other major tech companies such as Google, Facebook and Amazon.
Texas Attorney General Ken Paxton, who is running for US Senate in the Texas Republican primary, argues that Netflix’s practices breach the state’s Deceptive Trade Practices Act.
“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. “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. I will continue to work to protect Texas families from deceptive practices by Big Tech companies and ensure that
corporations are held accountable under Texas law.”
Netflix has rejected the state’s allegations. In a statement to Reuters, a spokesperson said: “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.”
The legal action in Texas follows other recent disputes involving the company, including a case in Italy where Netflix was ordered to repay subscriptions after a court determined price increases did not comply with Italian law.
The lawsuit also arrives amid intensifying scrutiny around online child safety and the design of digital products. Australia introduced a social media ban for under-16s this year, while several European countries are weighing similar restrictions, and the US Congress is advancing a number of proposals of its own.
More broadly, a growing number of companies are facing legal challenges over how they collect user data and whether that information is later shared or sold to third parties for advertising purposes.