Texas files lawsuit accusing Netflix of spying on children and addicting viewers

Texas attorney general sues Netflix

Texas AG Ken Paxton has sued Netflix, accusing it of “spying on” Texans and children by tracking viewing habits and selling data without consent. The complaint says Netflix built a large data operation despite claiming to be ad-free.

It also alleges Netflix made its platform addictive, using features like autoplay to keep viewers engaged. Netflix denies the allegations, calling the suit baseless and emphasizing its commitment to privacy.

Lawsuit claims Netflix harvested viewer data

Texas’s lawsuit claims Netflix secretly built a vast data-collection system for viewers. The complaint alleges Netflix logged billions of events each day, tracking habits, devices, locations, and more, even in children’s accounts.

For years, Netflix marketed itself as ad-free and privacy-friendly, but the filing says those promises were misleading. Instead, Netflix tracked and sold viewer data to advertisers and brokers, profiting from detailed user profiles.

Children’s profiles also tracked

Texas’s complaint says Netflix secretly collected extensive data from child viewers as well. It notes that even kids’ profiles were fully logged like any other account.

Netflix had pitched children’s profiles as safe and ad-free, but the lawsuit alleges children’s viewing habits were still tracked. The state argues Netflix misled parents by gathering granular data from kids without explicit consent.

Platform features alleged to drive binge-watching

Texas’s lawsuit argues that Netflix built its service to be addictive. It cites Netflix’s autoplay feature as a “dark pattern” designed to override self-control and keep users, especially kids, watching back-to-back episodes.

The filing also notes Netflix’s own promotions celebrating binge-watching, arguing the company has normalized excessive screen time. Texas contends Netflix concealed that these features exploit psychological impulses to maximize viewing time.

Paxton claims Netflix misled users on ads and kids’ safety

Paxton said Netflix built “a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent.” He also argued Netflix is “not the ad-free and kid-friendly platform it claims to be.”

Texas is asking the court to stop the alleged unlawful data practices, require autoplay to be set to off by default on kids’ profiles, and impose civil penalties if the state proves its claims.

Netflix rejects the allegations

Netflix denies the allegations. Its spokesperson said the lawsuit “lacks merit and is based on inaccurate and distorted information,” stressing that Netflix “takes our members’ privacy seriously”.

It also affirmed compliance with all privacy laws and said it expects to “address the allegations in court”. Netflix highlighted its “kid-friendly parental controls and transparent privacy practices” as evidence of its commitment to user privacy.

Netflix’s data sharing with advertisers

Texas’s complaint says Netflix expanded its advertising technology partnerships and data-matching capabilities, citing companies and platforms including LiveRamp, Experian, Acxiom, Google Display & Video 360, The Trade Desk, Yahoo DSP, and Amazon DSP.

The lawsuit argues that those systems allowed Netflix to use viewing-related and household-level signals for ad targeting and measurement. Netflix reported more than $1.5 billion in ad revenue for 2025, while denying Texas’s allegations that its data practices were unlawful or misleading.

Little-known fact: Texas is the only state to have the flags of 6 different nations fly over it. They are: Spain, France, Mexico, the Republic of Texas, the Confederate States, and the United States.

Lawsuit invokes Texas consumer protection law

Texas framed the case as a violation of the state’s Deceptive Trade Practices Act (DTPA). The lawsuit accuses Netflix of misrepresenting its data and platform policies to consumers, which could breach this consumer-protection law.

If Netflix loses, it could face heavy penalties. Texas is seeking fines up to $10,000 for each violation and demands that Netflix purge illegally collected data and disable certain features.

Fun fact: Texas is popularly known as The Lone Star State.

Netflix’s earlier privacy promises

Netflix long distinguished itself from ad-driven platforms. For example, former CEO Reed Hastings declared in 2020, “we don’t collect anything,” explicitly distinguishing Netflix from data-hungry firms like Google, Amazon, or Facebook.

Texas says that the promise was misleading. The complaint even quotes Netflix engineers calling the company “a logging company that occasionally streams movies,” implying Netflix did heavily track user data.

Growing concern over children’s online privacy

The Netflix case arrives amid broader scrutiny of how digital platforms collect children’s data and design products for long-term engagement. Recent litigation against major online platforms has increased attention on youth safety, privacy, targeted advertising, and addictive design claims.

The outcome could affect how streaming services present privacy practices, advertising systems, and autoplay controls for children, especially if Texas wins injunctive relief or civil penalties.

Parents’ reaction and future policies

Paxton’s complaint centers heavily on children’s online privacy, kids’ profiles, and autoplay defaults. The case could add pressure on streaming platforms to explain more clearly how they collect and use data from child-focused profiles.

Regardless of the outcome, the lawsuit reflects a broader debate over children’s privacy, platform design, parental controls, and how entertainment services balance engagement with user protection.

The Lone Star State’s legal fight with Netflix comes as Texas culture is also in focus through slang only locals truly understand.

Next steps and implications

Texas demands that Netflix purge data the state says was deceptively collected from Texans and set autoplay to off by default on kids’ profiles. The complaint also asks for civil penalties and other injunctive relief under state law.

Netflix is expected to contest the claims in court. If Texas prevails, Netflix could be required to change certain data practices, advertising disclosures, and kids-profile settings for Texas users while also facing court-ordered penalties.

Texas is now suing Netflix over claims involving children and viewer addiction, while elsewhere in the state, one small town is drawing attention for earning the Wellness Capital title.

Do you think Netflix should face stricter rules over youth content and screen addiction claims? Comment your thoughts.

This slideshow was made with AI assistance and human editing.

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