Data Dispute: Texas Sues Netflix Over User Data Sales Claims

The Netflix has been sued by the U.S. state of Texas over allegations of collecting and selling customers’ personal data without consent. Ken Paxton filed the lawsuit on Monday, claiming that Netflix secretly gathers users’ personal information—particularly that of children—and sells it to various advertising agencies and commercial brokers, generating hundreds of millions of dollars in revenue.

In a press release, Ken Paxton stated, “Netflix has created a covert surveillance program through which it unlawfully profits by using the personal data of Texas residents. My office will take all necessary steps to stop this.” The lawsuit further alleges that certain features, such as Netflix’s ‘autoplay’ function, are used to keep children engaged on the platform for extended periods and to facilitate greater data collection.

The case also accuses Netflix of manipulating consumers psychologically. In particular, the Attorney General has called for the ‘autoplay’ feature to be disabled by default on children’s profiles. Additionally, the court has been urged to order an immediate halt to the unlawful collection and distribution of user data.

However, Netflix has dismissed the lawsuit as baseless. In a statement, a company spokesperson said, “Attorney General Paxton’s claims are entirely inaccurate and based on distorted information. Netflix has always prioritized user privacy and operates in compliance with data protection laws in every country where we do business.”

The company added that it will contest the allegations in court and provide clarification regarding its advanced parental control systems and transparent privacy policies.

It is worth noting that this is not the first legal action taken by the Texas government against major technology companies; Ken Paxton has previously filed similar lawsuits against Samsung and Meta.

DBTech/BMT/OR