Texas Sues Netflix Over Data and Addictive Design Claims

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Texas Attorney General Ken Paxton has filed a lawsuit accusing Netflix of secretly collecting and selling user data, including information about children.
The complaint alleges Netflix used “dark patterns” such as autoplay features to keep viewers engaged and to increase data collection.
Paxton seeks civil penalties of up to $10,000 per violation, a purge of allegedly improper data, and limits on Netflix’s use of targeted advertising without consent.

Texas Files Suit Alleging Illegal Data Practices

On May 11, Netflix was hit with a lawsuit by Texas Attorney General Ken Paxton, who claims the streaming platform spied on children and other users by collecting personal data without proper consent and by structuring its service to be habit-forming.

According to the complaint, Texas alleges that for years Netflix misled subscribers by representing that it did not gather or share user data. In reality, the state says Netflix tracked viewers’ behavior, preferences, and viewing patterns, then sold this information to commercial data brokers and advertising technology firms, allegedly generating billions of dollars annually.

Allegations of “Dark Patterns” and Addictive Features

The lawsuit asserts that the Los Gatos, California-based company employed undisclosed “dark patterns” to keep customers on the platform longer. One example cited in the filing is an autoplay function that launches a new program once the viewer finishes another, which Texas argues is designed to extend watch time and facilitate further data collection.

The complaint summarizes the state’s view of Netflix’s strategy as follows: “Netflix’s endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetize the data for a handsome profit.” It also declares, “When you watch Netflix, Netflix watches you.”

Netflix Response and Cited Statements

In a statement, a Netflix spokesperson rejected the claims and said the company intends to contest them in court.

The 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.”

Texas’ complaint also points to public comments by Netflix co-founder and Chairman Reed Hastings. The filing quotes Hastings as saying in 2020, “we don’t collect anything,” as he contrasted Netflix’s data practices with those of Amazon.com, Facebook and Google.

Legal Basis and Requested Remedies

Paxton contends that Netflix’s alleged conduct violates the Texas Deceptive Trade Practices Act. The lawsuit asks the court to order Netflix to delete any data it allegedly obtained unlawfully and to stop using such data for targeted advertising without users’ explicit permission.

The attorney general is also pursuing civil penalties, seeking fines of up to $10,000 per violation.

Party	Role	Key Position in the Case
State of Texas / Ken Paxton	Plaintiff / Attorney General	Alleges deceptive and unlawful data collection, addictive design, and violations of the Texas Deceptive Trade Practices Act
Netflix	Defendant	Accused of secretly tracking users, selling data, and using “dark patterns” such as autoplay to keep viewers engaged
Reed Hastings	Co-founder and Chairman of Netflix	Cited in the complaint for a 2020 remark: “we don’t collect anything”

Broader Context and Political Backdrop

The article notes that many companies with large online footprints, including social media platforms and other internet businesses, face lawsuits claiming they covertly track users and sell data to third parties for advertising purposes.

Separately, the piece highlights that Paxton, a Republican, is currently running for the U.S. Senate and is challenging incumbent Republican Senator John Cornyn.