The lawsuit accuses Netflix of building a "surveillance program" that records and monetizes billions of behavioral events, including viewing habits, device information, and household network data. According to the complaint, Paxton’s office argues the company misled consumers by representing it did not collect or share extensive user data while simultaneously disclosing that information to advertising technology companies.
"Netflix has built a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent, and my office will do everything in our power to stop it," Paxton said in a statement. "Netflix is not the ad-free and kid-friendly platform it claims to be. Instead, it has misled consumers while exploiting their private data to make billions."
The complaint specifically targets Netflix’s use of autoplay features, which Paxton alleges are designed to be addictive and manipulate users, including children, into watching content for extended periods. The state is seeking injunctive relief to stop the unlawful collection and disclosure of user data and to require Netflix to disable autoplay by default on kids’ profiles.
Netflix’s platform tracks interactions across adult accounts and kids’ profiles, creating detailed consumer profiles that are combined with data from other platforms, according to the lawsuit. The state contends this practice allows Netflix to earn billions of dollars annually from "secretly selling consumer data" through a network of advertising technology companies.
Paxton said he will continue to work to protect Texas families from deceptive practices by technology companies and ensure corporations are held accountable under Texas law.
The lawsuit seeks civil penalties in addition to the requested injunctive relief.