Texas Attorney General Ken Paxton filed a sweeping lawsuit Monday against Netflix, accusing the Hollywood streaming giant of \u201cspying on\u201d people in his state, including children, and collecting user data without consent.<\/p>\n\n\n\n
\u201cNetflix 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,\u201d Paxton said in a statement accompanying the suit, which was filed in state court in Collin County.<\/p>\n\n\n\n
In a statement, a Netflix spokesperson said the lawsuit \u201clacks merit and is based on inaccurate and distorted information.\u201d<\/p>\n\n\n\n
\u201cNetflix takes our members\u2019 privacy seriously and complies with privacy and data\u2011protection laws everywhere we operate,\u201d the spokesperson said. \u201cWe look forward to addressing the Texas Attorney General\u2019s allegations in court and further explaining our industry-leading, kid\u2011friendly parental controls and transparent privacy practices.\u201d<\/p>\n\n\n\n
Paxton\u2019s lawsuit alleges that Netflix built \u201csurveillance machinery\u201d that tracks and logs users\u2019 viewing habits, preferences, devices, household networks, application usage and \u201cother sensitive behavioral data\u201d via adult and kid profiles alike.<\/p>\n\n\n\n
Netflix may have once portrayed itself as a \u201ckid-friendly and ad-free Big Tech alternative,\u201d the suit says. \u201cBut behind the scenes,\u201d it goes on to say, \u201cNetflix quietly built a behavioral-surveillance program of staggering scale.\u201d<\/p>\n\n\n\n
Netflix, which says it has more than 325 million subscribers worldwide, offers both ad-supported and ad-free subscription packages in the U.S. It rolled out an ad-supported tier in late 2022.<\/p>\n\n\n\n
\u201cNetflix\u2019s years-long bait-and-switch has led the company right to where it promised never to be: addicting children and families to its platform, mining those users for data, and then converting that data into lucrative intelligence for global advertising juggernauts,\u201d the suit says.<\/p>\n\n\n\n
Netflix also \u201cdeceptively designs its platform to be addictive,\u201d the 59-page filing says, highlighting \u201csubtle features engineered to manipulate users to take the actions Netflix wants them to take,\u201d such as using its autoplay function.<\/p>\n\n\n\n
Disney+, HBO Max and other leading entertainment streaming services have autoplay functions, too.<\/p>\n\n\n\n
Various technology platforms, most notably Meta\u2019s Facebook and Instagram, face growing legal scrutiny over data-mining practices, as well as features that critics deem addictive or unsafe.<\/p>\n\n\n\n
In late March, a Los Angeles County jury found Meta and Google\u2019s YouTube negligent in the design or operation of their social media platforms. Meta and Google spokespeople said the companies disagreed with the verdict and planned to appeal.<\/p>\n\n\n\n
Paxton last month launched an investigation of major music streaming platforms, including Spotify and Apple Music, over what he called \u201calleged payola schemes in which they accept bribes to artificially promote certain songs, artists, or content.\u201d<\/p>\n\n\n\n
Spotify and Apple Music did not immediately respond to requests for comment Monday.<\/p>\n\n\n\n
Netflix is accused of violating the Texas Deceptive Trade Practices Act (DTPA), a consumer protection measure first signed into law in the early 1970s. Paxton is seeking a jury trial, a permanent injunction to stop the data collection and civil penalties of up to $10,000 per violation of DTPA.<\/p>\n\n\n\n
Paxton is running for the Republican nomination for the U.S. Senate in Texas, challenging incumbent Republican John Cornyn.<\/p>\n\n\n\n