Texas Attorney General Ken Paxton has filed a lawsuit against Netflix, accusing the streaming giant of secretly collecting data from millions of users, including children, and engineering its platform to keep them hooked. The lawsuit, filed Monday in a Collin County state court near Dallas, claims Netflix tracked viewing habits, devices, and household networks, then sold the information to commercial data brokers and ad-tech firms.
The Allegations
According to the complaint, Netflix generated billions of dollars annually from this data trade while publicly denying such practices. "When you watch Netflix, Netflix watches you," the filing states. The case heavily relies on a 2020 statement by co-founder Reed Hastings, who told audiences "we don't collect anything" to differentiate Netflix from Amazon, Meta, and Google. Texas argues this claim was central to a years-long deception.
Data Collection and Advertising Shift
Once Netflix had amassed sufficient user data under those promises, the complaint says, it pivoted and built an advertising business that mirrors the very practices it once criticized. Netflix now has over 325 million subscribers and projects 2026 revenue of up to $51.7 billion, with ad income expected to nearly double.
Autoplay as a Dark Pattern
The lawsuit also targets autoplay, the feature that automatically plays the next episode. Texas calls it a manipulative "dark pattern" designed to keep children glued to screens for hours. The tracking applied to both adult accounts and children's profiles, the complaint says.
What Paxton Seeks
Under the Texas Deceptive Trade Practices Act, the lawsuit requests the court to order Netflix to purge data allegedly gathered without permission, disable autoplay by default on children's profiles, and stop targeted advertising without explicit consent. Civil penalties could reach $10,000 per violation.
Netflix's Response
Netflix pushed back strongly. A spokesperson said the lawsuit "lacks merit" and relies on distorted information, adding the company would address the claims in court.
Political Context
Paxton, a Republican running for the U.S. Senate against incumbent John Cornyn, cited a March California jury verdict that found Meta and YouTube liable for addictive design as precedent for his case.
