Texas sues Netflix over alleged tracking, sale of viewing data

Texas Attorney General Ken Paxton sued Netflix, alleging it tracked and sold Texans’ viewing data, including children’s, and misled users about its privacy practices.

Texas Attorney General Ken Paxton filed a lawsuit in Texas state court accusing Netflix of secretly tracking and selling detailed viewing data of Texans, including children, and of misleading subscribers about how that data was collected and used.

The complaint describes what Paxton’s office calls a “surveillance program” that logs clicks, pauses and binge sessions and turns those signals into data that could be sold to advertisers and commercial data brokers. The filing asserts those sales produced “billions of dollars” a year and that the data was used beyond internal recommendation systems.

The complaint alleges the tracking extended to children’s profiles and viewing habits. In the filing, Paxton’s office wrote that Netflix operates as “a logging company that records and monetizes billions of behavioral events-and occasionally streams movies.” The suit argues that subscribers were not fully informed about the scale and granularity of the logging.

Paxton is asking the court for orders to stop what his office calls unlawful collection and disclosure of user data, for civil penalties and for other injunctive relief. Among the specific requests is a requirement that Netflix disable autoplay by default on profiles for children, and that the company implement clearer consent and privacy controls for subscribers.

Netflix responded that the complaint mischaracterizes its practices. A company statement called the suit “inaccurate and distorted” and described it as lacking merit, adding that Netflix complies with applicable privacy laws. The company has denied selling user-level viewing histories to third-party advertisers in the way the complaint describes.

The Texas filing cites a 2024 ruling by the Dutch Data Protection Authority that concluded Netflix did not disclose the full scale and granularity of certain data collection. Paxton’s office referenced that ruling to support its claim that subscribers were misled about data logging.

The complaint targets features tied to engagement and advertising. Paxton’s filing contends that changes could affect autoplay and preview behavior on children’s profiles and the targeting used on Netflix’s ad-supported plans, if a court or regulators impose restrictions.

Netflix profiles include settings that let users view and clear watch history, set parental controls for kids’ accounts and turn off autoplay of previews. The lawsuit will proceed in Texas state court and is likely to prompt further legal and regulatory scrutiny of streaming platforms’ data practices.

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