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Texas lawsuit alleges Netflix is illegally spying on kids

Texas lawsuit alleges Netflix is illegally spying on kids

The state accuses the streamer of shady data collection practices and other abuses in its suit.

Known for breaking major streaming stories, he’s covered everything from Netflix policy shifts to Peacock’s ad-tier changes. A sci-fi fan and Toshiba Fire TV user, he brings sharp analysis and a love for the genre to his reporting.
The flag of Texas flying over the statehouse.

Netflix’s legal team had better book a flight for the Lone Star State. The streamer faces a new lawsuit filed by the state of Texas, whose attorney general, Ken Paxton, claims that Netflix pulled a bait-and-switch on customers with its move into advertising and spies on children by collecting their data to sell.

Key Details:

  • Cut it out: The lawsuit accuses Netflix of violating the Texas Deceptive Trade Practices Act.
  • Shady doings: The suit says Netflix unlawfully collected customer data without disclosure.
  • Not so fast: Netflix’s statement on the suit says the case “lacks merit.”

In the lawsuit, Attorney General Paxton accuses Netflix of violating the Texas Deceptive Trade Practices Act. Specifically, the suit accuses the streamer of a “years-long bait-and-switch,” luring customers with its ad-free plan before launching an ad-supported tier that secretly mines their data.

The streamer’s autoplay feature also comes under fire in the lawsuit, specifically in how it targets children. Netflix is accused of using autoplay to get kids addicted to its content, and enabling autoplay by default is just another way for the streamer to collect user data.

The suit quotes Netflix co-founder Reed Hastings as saying “we don’t collect anything” in 2020 as he tried to explain the difference between Netflix’s data collection practices and those of Amazon, Google, and other big tech firms. But whether or not Hastings’ words could be considered a binding promise in perpetuity is up to the court to decide.

Netflix has responded to the lawsuit with a statement defending itself and saying the case is a big ball of nothing.

“Respectfully to the great state of Texas and Attorney General Paxton, this lawsuit lacks merit and is ​based on inaccurate and distorted information,” the statement says. “Netflix takes our members’ privacy ​seriously and complies with privacy and data protection laws everywhere we operate.”

Nearly all tech companies harvest consumer data in one form or another, so it seems the state will have a high bar to clear to prove that Netflix’s tactics for collecting data are unlawful. But plaintiffs have been successful in similar lawsuits recently; in September, a federal jury awarded more than $425 million to a class of users who accused Google of collecting data without authorization.

Netflix

Netflix is a leading subscription-based video streaming service that offers on-demand access to an extensive library of over 3,000 movies, 2,000+ TV shows, and a growing collection of acclaimed Netflix originals. Renowned for producing groundbreaking content, Netflix has become a cultural powerhouse with hit originals like “Stranger Things,” “Wednesday,” “Squid Game,” “The Crown,” “Tiger King,” “Bridgerton,” “The Witcher,” and “Black Mirror.”

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The platform constantly updates its catalog, introducing fresh content alongside timeless classics and international hits. Netflix’s commitment to storytelling has also earned critical acclaim, with award-winning exclusives such as “Roma,” “Marriage Story,” “The Power of the Dog,” “Mank,” and “Ma Rainey’s Black Bottom.” In 2023, their animated film “Guillermo del Toro’s Pinocchio” won an Academy Award for Best Animated Feature, further solidifying Netflix’s reputation for high-quality content.

Recently, Netflix has expanded beyond standard movies and TV titles with the addition of video podcasts, and is also exploring a digital store that would offer third-party streamers within the app.

Netflix offers three plans – stream on 2 devices in HD with the “Standard with Ads” ($8.99) plan, on 2 devices in HD with the “Standard” ($19.99) plan, and 4 devices in up to 4K on the “Premium” ($26.99) plan.


David Satin has been a dedicated News Writer at The Streamable since 2022, covering a wide range of stories in the entertainment and streaming industries. With years of experience writing online, David previously worked as a list writer for Screen Rant, where he gained recognition for his extensive coverage of sci-fi and fantasy genres. His ability to break and analyze major stories has made him a trusted voice in the streaming world. Over the course of his career, Satin has become an integral part of The Streamable team, contributing to some of the most impactful stories in the industry.

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