Texas Attorney General Ken Paxton has filed a lawsuit against Netflix, accusing the streaming giant of secretly collecting user data, allegedly spying on children, and designing its platform to be addictive.
Core Allegations of Data Misconduct
The lawsuit centers on claims that Netflix has misrepresented its data practices to consumers for years. According to the complaint filed in Collin County, Texas, the state alleges that Netflix:
- Tracked viewing habits and user preferences extensively.
- Sold this collected data to commercial data brokers and advertising technology companies.
- Misled the public by falsely claiming it did not collect or share user data.
Contradicting Past Statements
A key point in the litigation involves statements made by former Netflix CEO Reed Hastings. The complaint specifically cites a 2020 statement where Hastings reportedly said, "we don't collect anything," an assertion made while distinguishing Netflix from tech giants like Amazon, Facebook, and Google.
Impact and Scope of the Lawsuit
The filing asserts that Netflix's data collection practices are highly profitable, suggesting the company generates billions of dollars annually through these activities. The complaint explicitly warns users, stating, "When you watch Netflix, Netflix watches you."
Netflix has not yet issued a formal response to the allegations.