Netflix sued for allegedly 'spying on users' to make the service more 'addictive'
Netflix has had a turbulent few months, with loyal subscribers threatening to cancel their memberships over what many describe as relentless price hikes, and some having stuck with the platform for over two decades before finally reaching their limit.
Now, Texas Attorney General Ken Paxton has filed a lawsuit against Netflix, accusing the company of collecting data from children and adults in the state without their consent.
The case claims that the streaming giant uses their data in ways that contradict the platform's approach to user privacy. According to Paxton, the Amazon rival platform allegedly 'records and monetises billions' of pieces of data about how users behave on it.
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"When you watch Netflix, Netflix watches you," the complaint said.
"Every interaction on the platform became a data point revealing information about the user," Paxton's office said, as shared by the BBC.
At the same time, Netflix positioned itself as the antidote to big tech surveillance.
Former CEO Reed Hastings was quoted in 2019 and 2020 as saying the company did not and would not collect or monetise user data for advertising purposes.
“For years, Netflix’s leadership told the world it had ‘zero interest’ in advertising … and styled itself as the anti-Big Ad Tech refuge,” the complaint stated. “But once Netflix had stockpiled user data under those promises, it flipped the script and built an ads business that mirrors everything it once attacked.”
The Attorney General's office also pointed out the platform's 'addictive' design choices, arguing that features like auto-playing content were deliberately engineered to keep users, including children, on the platform for as long as possible.
The lawsuit comes at a time of growing scrutiny around addictive design in the tech industry, following Meta's Mark Zuckerberg court appearance amid claims that social media platforms are inherently addictive.
Paxton's office alleges Netflix violated the Texas Deceptive Trade Practices Act, which prohibits 'false, deceptive, or misleading acts and practices in the course of trade and commerce.'
The state is seeking a court order requiring Netflix to delete any data it 'deceptively collected from Texans,' stop processing that data for targeted advertising, and switch auto-play off by default on children's profiles.
Netflix has rejected the claims and says it will challenge them in court.
Speaking to the BBC, a Netflix spokesperson said: "Respectfully to the great state of Texas and Attorney General Paxton, this lawsuit lacks merit and is based on inaccurate and distorted information.
"Netflix takes our members' privacy seriously and complies with privacy and data protection laws everywhere we operate.
"We look forward to addressing the Texas attorney general’s allegations in court and further explaining our industry-leading, kid‑friendly parental controls and transparent privacy practices.”