Texas Accuses Netflix of Illegally Collecting User Data, Including Children's Information
Texas Attorney General Ken Paxton has filed a lawsuit against Netflix, accusing the streaming giant of "spying" on its users, including children, by illicitly collecting and monetising their data. The complaint, lodged on Monday, alleges Netflix "records and monetises billions" of user interactions on its platform, despite previous public statements by former CEO Reed Hastings suggesting the company did not engage in such practices.
The Attorney General's office contends that "Every interaction on the platform became a data point revealing information about the user," asserting that Netflix used "addictive" design elements, such as auto-playing content, alongside extensive logging of user activity to keep individuals engaged on the service. This data, which includes detailed information on what users click and how long they linger, was reportedly leveraged to share with commercial data brokers from 2022 onwards, contributing to billions of pounds in revenue.
Netflix has rejected the accusations, stating the lawsuit "lacks merit and is based on inaccurate and distorted information." A company spokesperson affirmed Netflix's commitment to user privacy and compliance with data protection laws. The lawsuit seeks a court order for Netflix to delete "deceptively collected" data, cease processing data for targeted advertising, and make auto-play an opt-in feature for children's profiles.
The legal action invokes the Texas Deceptive Trade Practices Act, which prohibits "false, deceptive, or misleading acts and practices in the course of trade and commerce." This development follows a California lawsuit arguing Meta and YouTube could be held liable for their platforms' addictive designs, potentially paving the way for similar legal challenges against technology firms.
