Texas lawsuit claims Netflix secretly tracked, sold users’ viewing data

Netflix privacy lawsuit overview:

• Who: The state of Texas filed a lawsuit against Netflix Inc.
• Why: Texas claims Netflix secretly harvested and sold users’ viewing data despite promising consumers it would not engage in data-driven advertising practices.
• Where: The Netflix privacy lawsuit was filed in Texas state court.

Texas sued Netflix, alleging the streaming platform secretly tracked and sold users’ personal viewing data despite publicly portraying itself as an ad-free, privacy-focused alternative to other technology companies.

According to a petition filed in Collin County District Court, Netflix spent years assuring consumers it would not adopt the same data-driven advertising practices associated with companies such as Google and Facebook and promised subscribers a platform free from advertising-based surveillance.

The Netflix privacy lawsuit claims the company later reversed course and began generating billions of dollars through digital advertising and data monetization while continuing to reassure consumers about privacy protections.

Texas alleges Netflix created a system designed to monitor user behavior “on a staggering scale” while using features such as autoplay and other “dark patterns” to keep viewers engaged for longer periods of time.

“Netflix has built a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent,” Texas Attorney General Ken Paxton said in a statement, as reported by Law360.

Texas alleges Netflix tracked children’s viewing habits

The privacy lawsuit further claims Netflix tracked children’s browsing and viewing activity through kids’ profiles despite marketing the platform as family friendly and safe for children.

According to the petition, Netflix claimed that children’s profiles were separated from standard accounts while allegedly continuing to collect and analyze viewing behavior from younger users without properly notifying parents.

Texas alleges Netflix internally described itself as “a logging company that occasionally streams movies,” arguing the company was designed to collect and analyze subscriber activity data.

The state claims Netflix violated the Texas Deceptive Trade Practices Act and is seeking civil penalties of up to $10,000 per violation, along with injunctive relief requiring the company to purge allegedly improperly collected data and stop using it.

Meanwhile, ad-supported streaming service Plex asked a California federal judge to dismiss a class action lawsuit alleging it collected users’ viewing data without consent while avoiding its arbitration obligations.

What do you think about Texas’ claims against Netflix? Let us know in the comments.

The state of Texas is represented by Benjamin Hook of the Texas Attorney General’s Office.

The Netflix privacy lawsuit is Texas v. Netflix Inc., Case No. [not yet publicly available], in the District Court of Collin County, Texas.

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