Texas is suing Netflix, alleging that the company spied on its users without their knowledge or consent and manipulates them.
The lawsuit alleges that Netflix tracked and logged users' viewing habits, preferences, devices, household networks, application usage, and other behavioral data. That information, according to the lawsuit, was then disclosed to commercial data brokers and advertising technology companies, where it was combined with data collected from other platforms to build detailed consumer profiles.
"Netflix has built a surveillance program designed to illegally collect and profit from Texans' personal data without their consent, and my office will do everything in our power to stop it," said Attorney General Paxton.
"Netflix is not the ad-free and kid-friendly platform it claims to be. Instead, it has misled consumers while exploiting their private data to make billions. 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."
The lawsuit states that Netflix actually is a data "logging" company that also streams content.
"In reality, streaming content is merely a means to Netflix's true end: studying users. The
company uses every possible interface—TV, phone, tablet, console—as a Trojan horse
behavioral sensor to log granular 'events,'" the lawsuit states.
A Netflix spokesperson told Politico that the company disputed the assertions made in the lawsuit.
"Respectfully to the great state of Texas and Attorney General Paxton, this lawsuit lacks merit and is based on inaccurate and distorted information," the spokesperson told Politico. "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."
The lawsuit also attacks Netflix design features such as autoplay, alleging that they are manipulative and addictive.
The complaint against Netflix cites the Texas Deceptive Trade Practices Act ("DTPA"). The lawsuit seeks to stop what it calls is the unlawful collection and disclosure of user data and seeks to require Netflix to disable autoplay by default on kid's profiles. The complaint also asks for other injunctive relief and civil penalties.
