In a new lawsuit, the Texas Attorney General accuses Netflix of tracking and selling users’ data and behavior patterns to other large tech companies.
Texas Attorney General Ken Paxton filed a lawsuit Monday accusing Netflix of misleading users about how it collects and shares personal data, while portraying itself as a privacy-focused alternative to other tech platforms, as CBS News reports.
The complaint, filed under Texas’ Deceptive Trade Practices Act, alleges the streaming company tracks users’ viewing activity, searches, location data, pauses, rewinds, and other behavior to build advertising profiles that are allegedly shared across the broader ad-tech ecosystem, including data tied to children’s accounts.
The lawsuit highlights past comments from Netflix co-founder Reed Hastings claiming the company had “zero interest” in advertising and was not involved in the kind of data controversies surrounding other major tech firms. Paxton alleges Netflix later reversed course after collecting years of subscriber data under those promises.
The suit also accuses Netflix of designing parts of its platform to encourage compulsive use, including autoplay features on kids’ profiles. Paxton’s office argues the company publicly distanced itself from advertising and surveillance-based business models while quietly building a data-driven ad operation behind the scenes, according to Politico.
“For years, Netflix’s leadership told the world it had ‘zero interest’ in advertising…and styled itself as the anti–Big Ad Tech refuge,” says the complaint. “But once Netflix had stockpiled user data under those promises, it flipped the script and built an ads business that mirrors everything it once attacked.”
A spokesperson for Netflix said the lawsuit is based on “inaccurate and distorted information” and defended the company’s parental controls and privacy practices.
“Netflix takes our members' privacy seriously and complies with privacy and data‑protection laws everywhere we operate,” said the company in a statement, per CBS. “We look forward to addressing the Texas Attorney General's allegations in court and further explaining our industry-leading, kid‑friendly parental controls and transparent privacy practices."
Texas is seeking court orders requiring Netflix to stop the alleged practices, including disabling autoplay on children’s profiles, and purging Texans’ user data.
“I will continue to work to protect Texas families from deceptive practices by Big Tech companies and ensure that corporations are held accountable under Texas law," said Paxton.
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