Texas has filed a lawsuit against Netflix, alleging the streaming service spies on users and collects data from children without consent. The Texas Attorney General’s office accuses the platform of employing ‘addictive’ design features to keep users engaged while secretly collecting and monetizing their behavior, according to the lawsuit.

Allegations of Deceptive Practices

Attorney General Ken Paxton claimed in the lawsuit that Netflix has misrepresented its data collection practices for years, falsely advertising to consumers that it did not track or share user data. The filing states that the company actually tracks user habits and preferences, selling them to data brokers and advertising technology companies to generate billions in revenue.

Among the data points Netflix allegedly collects are what users click on, how long they linger on specific content, and their overall viewing behavior. The lawsuit also claims that in 2022, Netflix began using the data it collected from children and families to boost its revenue, sharing it with commercial data brokers.

Design Features and Legal Consequences

Paxton’s office argues that the platform uses features like autoplay, which automatically plays a new show when another ends, to keep users fixated on the screen. These features are described as part of a broader strategy to keep viewers engaged and maximize data collection.

The lawsuit seeks for the court to order Netflix to delete any data collected deceptively from Texas residents, cease using it for targeted advertising, and disable autoplay by default for children’s profiles. The Texas Deceptive Trade Practices Act is cited as the legal basis for the lawsuit, which prohibits false, deceptive, or misleading business practices.

If found liable, Netflix could be required to pay civil fines of up to $10,000 per violation, as Paxton also wants the company to stop processing Texas residents’ data for targeted advertising without their consent.

Broader Industry Scrutiny

This lawsuit comes amid growing scrutiny of tech companies over features designed to keep users hooked. Similar lawsuits have targeted platforms like YouTube and Meta over alleged addictive design features, with a recent California jury ruling in March finding both companies liable for their role in harming young users.

Texas cited the California verdict as a precedent, suggesting that similar legal action against Netflix is warranted. The state’s filing also quotes former Netflix CEO Reed Hastings, who in 2020 claimed the company “doesn’t collect anything,” contrasting it with companies like Amazon and Google. The lawsuit argues that Netflix has now built an advertising business that mirrors those it once criticized.

Netflix has denied the allegations and stated it will challenge the claims in court, according to a statement provided to Reuters, while the company emphasized that it takes privacy and data protection seriously and complies with laws in every region where it operates.

Ken Paxton, a Republican, is currently running for the U.S. Senate, challenging incumbent Senator John Cornyn. The timing of the lawsuit raises questions about whether it is motivated by broader political goals.