Texas' latest courtroom drama stars Netflix, and it's about surveillance, not streaming. Texas Attorney General Ken Paxton sued the company Monday, accusing it of secretly tracking users, including children, then cashing in on their viewing habits in violation of state consumer-protection laws, Reuters reports. The complaint, filed in state court in Collin County, claims Netflix long misled subscribers by suggesting it didn't collect or share personal data while allegedly feeding detailed viewer information to data brokers and ad-tech firms, generating billions in revenue.
The state also says Netflix engineered its service to keep people watching through "dark patterns," pointing to features like autoplay that nudge viewers into continuous viewing. The lawsuit quotes former CEO Reed Hastings as saying in 2020, "we don't collect anything," as he contrasted Netflix with Amazon, Facebook, and Google on data practices—a statement Texas now characterizes as deceptive. "When you watch Netflix, Netflix watches you," the complaint says, arguing that children and families were turned into data sources without meaningful consent.
- "In short, Netflix sold subscriptions to its programming as an escape from Big Tech surveillance: pay monthly, avoid tracking," the lawsuit states, per Variety. "Texans trusted that bargain. Netflix broke it—constructing the very data-collection system subscribers paid to escape."
Paxton is asking a judge to order Netflix to delete data allegedly gathered illegally, stop using it for targeted ads without clear permission, and pay civil penalties of up to $10,000 for each violation under the Texas Deceptive Trade Practices Act. Paxton, a Republican, is challenging GOP Sen. John Cornyn for the party's nomination. Neither man took 50% of the vote in the March primary, sending the race to a May 26 runoff.
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