Netflix has been sued by Texas Attorney General Ken Paxton over allegations that the streaming platform secretly collected user data without consent and designed its service to encourage addictive viewing behaviour.
The lawsuit, filed in a state court in Collin County, Texas, accuses Netflix of misleading users about its data collection practices while allegedly sharing viewing habits and preferences with advertising and data brokerage firms.
According to the complaint, Netflix falsely assured consumers that it did not collect or share user data, while internally monetising audience behaviour for commercial gain.
Texas also alleged that the company used “dark patterns,” including autoplay features, to keep users engaged for longer periods.
“Netflix’s endgame is simple and lucrative: 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,” the complaint stated.
The lawsuit referenced comments made in 2020 by Netflix co-founder Reed Hastings, who reportedly said the company did not collect user data in the same way as major advertising-driven technology firms.
Netflix denied the allegations and said it intends to challenge the claims in court.
“Netflix takes our members’ privacy seriously and complies with privacy and data protection laws everywhere we operate,” a company spokesperson said.
Texas is seeking civil penalties of up to $10,000 per violation and has asked the court to order Netflix to delete any data allegedly collected unlawfully and halt targeted advertising practices without user consent.
