Netflix is facing a major lawsuit from the state of Texas after Attorney General Ken Paxton accused the streaming giant of illegally collecting user data, including information tied to children, while using manipulative platform features designed to keep viewers watching longer.
The lawsuit, filed in Collin County, alleges Netflix secretly tracked viewing habits, behavioral patterns, device information, and other personal data without properly informing users or obtaining valid consent. Texas claims the company then shared or monetized portions of that data through advertising technology partners and commercial data brokers.
According to the complaint, Netflix publicly presented itself for years as a privacy-focused alternative to large tech companies while allegedly operating what Texas describes as a “behavioral surveillance” system behind the scenes. The lawsuit points to past public comments from former Netflix CEO Reed Hastings, who stated in 2020 that the company did not collect extensive user data. Texas argues those statements were misleading.
A major focus of the case involves children and teenagers using the platform. Texas accuses Netflix of designing features specifically intended to maximize viewing time among younger users, including autoplay systems that automatically launch new episodes or shows without requiring additional interaction.
The lawsuit describes these features as “dark patterns,” a term commonly used to describe interface designs that subtly manipulate user behavior. Texas claims Netflix intentionally engineered its service to encourage binge-watching while simultaneously collecting increasingly detailed behavioral data from viewers.
The state alleges the company profited heavily from the practice by building detailed advertising and behavioral profiles tied to user activity. Prosecutors claim Netflix harvested viewing preferences, watch history, engagement behavior, and other data points that could potentially reveal sensitive personal information about users and families.
Texas is seeking civil penalties of up to $10,000 per violation under the Texas Deceptive Trade Practices Act. The lawsuit also asks the court to force Netflix to delete any illegally collected data and stop using targeted advertising systems tied to improperly gathered user information.
In addition, the state wants autoplay features disabled by default on children’s accounts, arguing the tools contribute to compulsive viewing behavior among minors.
Netflix has denied the allegations and said it plans to challenge the lawsuit in court. A company spokesperson described the claims as inaccurate and misleading, arguing that Netflix complies with privacy laws and provides users with parental controls and privacy management tools.