Texas Attorney General Ken Paxton has initiated legal proceedings against Netflix, alleging the streaming giant has been covertly monitoring users—including minors—and harvesting personal data without proper authorization, thereby contravening the Texas Deceptive Trade Practices Act.
Lawsuit Details
The complaint, lodged on 11 May, contends that Netflix reneged on earlier commitments to remain advertisement-free, having introduced an ad-supported tier in 2022. It further accuses the company of constructing what it terms 'surveillance machinery' while marketing subscriptions as a respite from such tracking. According to the filing, Netflix shares collected user data with advertisers and commercial data brokers such as Experian and Acxiom. The platform is also deliberately engineered, including its 'autoplay' feature, to foster addictive behavior among subscribers, particularly children.
Netflix's Response
In response, a Netflix spokesperson dismissed the lawsuit as 'lacking merit and based on inaccurate and distorted information.' The company emphasized its commitment to member privacy, compliance with all applicable laws, and the provision of industry-leading parental controls and transparent privacy practices.
Political Context
The legal action coincides with Republican Ken Paxton's campaign for a U.S. Senate seat. It also follows the recent announcement of Reed Hastings stepping down as Netflix chairman amid a challenging period for the company, characterized by slowing sales and intensifying competition.
