US based streaming service giant Netflix has been sued in Texas over claims regarding it collects data belonging to children and adults in the US with their permission and uses an “addictive” design to keep them hooked to the platform. Ken Paxton, the Attorney General of Texas, accused the company of “spying” on users saying it “records and monetises billions” of pieces of information regarding how users use the platform, despite suggesting otherwise. His office further stated, “Every interaction on the platform became a data point revealing information about the user.” However, the company has rejected the allegation and stated that it will challenge them through judiciary, as per a statement published in Reuters.
What the Lawsuit Says
The lawsuit, filed in state court in Collin County, claims that Netflix misled consumers for years by saying it did not collect or share user data, when in reality it was building what the filing describes as a surveillance programme of massive scale.
The suit says Netflix quietly built a system to track and log users’ viewing habits, preferences, devices, household networks, and other sensitive data, and this tracking applied not just to adult accounts but also to kids’ profiles.
Netflix then shared this information with commercial data brokers and advertising technology companies, where it was combined with data from other platforms to build detailed consumer profiles.
How Netflix Keeps You Watching
The lawsuit does not stop at data collection. It also takes aim at how Netflix is designed. Netflix designs its platform to be addictive using features that are built to push users into actions the company wants them to take. The autoplay function, for example, creates a continuous stream of content meant to keep users, including children, watching for long periods of time.
Texas also accused Netflix of quietly using what it calls “dark patterns” to keep users on the platform, with autoplay starting a new show the moment another one ends.
What Paxton Is Asking For
Paxton has said that Netflix’s alleged surveillance violates the Texas Deceptive Trade Practices Act. He wants the company to delete all data it collected without proper consent, stop using that data for targeted advertising, and pay civil fines of up to 10,000 dollars per violation.
The suit also claims that privacy-policy changes Netflix introduced in 2025 quietly implied, without openly admitting that the company collects and uses data from non-ad-tier subscribers for advertising and may have been doing so since 2022.
Netflix Pushes Back
Netflix has not taken the allegations lying down. A Netflix spokesperson said the lawsuit lacks merit and is based on inaccurate and distorted information, adding that the company takes member privacy seriously and complies with privacy and data protection laws everywhere it operates. The company said it looks forward to addressing the claims in court.
With over 325 million subscribers worldwide, Netflix is one of the biggest names in streaming. This lawsuit puts a big question mark on how many users, especially parents, really know about what happens with their data every time they hit play.
Syed Ziyauddin is a media and international relations enthusiast with a strong academic and professional foundation. He holds a Bachelor’s degree in Mass Media from Jamia Millia Islamia and a Master’s in International Relations (West Asia) from the same institution.
He has work with organizations like ANN Media, TV9 Bharatvarsh, NDTV and Centre for Discourse, Fusion, and Analysis (CDFA) his core interest includes Tech, Auto and global affairs.
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