Texas Attorney General Ken Paxton filed a lawsuit against Netflix this week, accusing the streaming giant of illegally collecting and selling personal data from millions of Texans, including children, without their consent. The lawsuit claims Netflix has operated a massive surveillance program while publicly denying such practices.

Allegations of Deceptive Data Collection

According to Paxton’s office, Netflix has spent years telling consumers it does not collect or share extensive user data. The lawsuit paints a different picture, describing Netflix as a logging company that records and monetizes billions of behavioral events while occasionally streaming entertainment content. The platform allegedly tracks viewing habits, preferences, devices, household networks, application usage, and other sensitive behavioral data from every user interaction, including children’s profiles.

Commercial Data Sharing Exposed

The lawsuit alleges Netflix shared this collected information with commercial data brokers like Experian and Acxiom, companies unrelated to streaming entertainment. Netflix also reportedly partnered with advertising technology platforms including Google Display & Video 360 and The Trade Desk, enabling user data to be merged with information collected from other sources. Paxton’s office claims Netflix earns billions annually by quietly deploying surveillance tactics it publicly rejected to attract customers initially.

The Texas Attorney General argues this represents a deliberate bait-and-switch strategy designed to addict children and families while mining their personal data. The lawsuit specifically highlights Netflix’s auto-play function, which encourages extended viewing sessions, particularly among younger users. Paxton stated his office will do everything in its power to stop what he calls illegal collection and profiteering from Texans’ personal information.

Netflix Denies Claims as Big Tech Faces Scrutiny

A Netflix representative told NBC News the lawsuit lacks merit and relies on inaccurate and distorted information. The company maintains it takes member privacy seriously and complies with privacy and data protection laws everywhere it operates. Netflix pointed to its parental controls and transparent privacy practices as evidence of responsible conduct.

This legal action comes amid broader scrutiny of Big Tech data practices. A California jury recently found YouTube and Meta negligent for using design features promoting addiction among minors. Meta paid $4.2 million in damages while YouTube paid $1.8 million. Separately, a New Mexico jury ordered Meta to pay $375 million for failing to protect users from child predators. These verdicts signal growing legal consequences for technology companies whose platforms allegedly harm children while collecting their personal information.