Well, Texas is again at the forefront of enforcing its state’s data privacy laws, going after another large company.
Texas Attorney General Ken Paxton filed a lawsuit against Netflix, accusing the streaming giant of running what he calls a “surveillance program” disguised as a movie service. The complaint, filed under the Texas Deceptive Trade Practices Act, alleges that Netflix has been secretly tracking what Texans, including children, watch and selling that information to advertisers and data brokers, all while telling customers it does not collect or share their data.
If the allegations hold up, the case could reshape what families think they are paying for when they sign up for a streaming service. This may also be a shot across the bow of other streaming services.
What Netflix Is Accused Of
According to the lawsuit, Netflix has spent years telling subscribers it does not collect or share extensive personal information. The state argues the opposite is happening behind the scenes. Paxton’s office describes Netflix as “a logging company that records and monetizes billions of behavioral events, and occasionally streams movies.”
The complaint paints a picture of pervasive tracking. Every click, pause, search, and scroll allegedly becomes a data point. The state says Netflix logs:
- What users watch and when
- Viewing preferences and patterns
- Devices used to access the service
- Household network information
- How users interact with the Netflix app
Importantly, the lawsuit alleges this tracking is not limited to adult accounts. Profiles set up for children, often marketed as a safer, more controlled experience, are subject to the same data collection, according to the state.
Where the Data Allegedly Goes
The lawsuit’s most pointed claims involve what happens to all this information. Paxton’s office says Netflix shares user data with commercial data brokers and advertising technology companies — the largely invisible middlemen who assemble detailed consumer profiles by combining information from many platforms.
In the state’s telling, Netflix viewing data does not stay with Netflix. It gets shopped around what the complaint calls “Big Ad Tech’s shadowy network,” where it is matched up with information from other apps, websites, and services to build a more complete picture of each user. The state claims Netflix earns billions of dollars a year from this practice.
For most subscribers, that would come as a surprise. Netflix has long marketed itself as a subscription service rather than an ad-supported one, and it has historically distinguished itself from social media platforms that openly run on advertising data.
You can read a copy of the complaint here.
Autoplay and “Addictive” Design
The state goes beyond data collection to challenge how Netflix is built. The lawsuit alleges that Netflix uses design features intended to manipulate users into spending more time on the platform, a tactic sometimes called “dark patterns” or addictive design.
The autoplay feature is the headline example. When one episode ends, the next begins automatically, often before a viewer can decide whether to keep watching. The lawsuit says this is engineered to keep people, including children, glued to the screen for as long as possible.
Critics have raised similar concerns about other platforms for years, but it is unusual to see a state attorney general directly target this kind of design in a consumer protection lawsuit.
In my opinion, this is government overreach. It should be up to the parents to manage and oversee their own and their children’s viewing habits. As long as proper disclosures are made about the functionality, we don’t need a government agency coming in to dictate what people view and how they view their own entertainment.
What Paxton Is Asking For
The lawsuit is filed under the Texas Deceptive Trade Practices Act, a state law that prohibits businesses from misleading consumers. Among other things, the state is asking the court to:
- Order Netflix to stop the alleged unlawful collection and disclosure of user data
- Require Netflix to turn off autoplay by default on profiles set up for kids
- Impose civil penalties
- Grant other forms of injunctive relief — meaning court orders changing how the company operates
“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 announcing the lawsuit. He added that Netflix “is not the ad-free and kid-friendly platform it claims to be.”
Why It Matters for Families
For parents, the central concern is straightforward. Many families create separate kids’ profiles precisely because they want a more controlled, more private experience for their children. If the state’s allegations are accurate and can be proven, those profiles offered far less protection than parents assumed.
For all consumers, the case is part of a broader push by state attorneys general, both Republican and Democratic, to hold technology companies accountable for how they handle personal information. Texas, in particular, has been increasingly active in this space, leveraging both its longstanding consumer protection statute and newer privacy-focused laws.
What Happens Next
Netflix has not yet filed its formal response to the lawsuit, and companies typically push back hard against these kinds of allegations. The case will work its way through the courts, where the state will have to back up its claims with evidence.
In the meantime, consumers do have some practical steps they can take today: review the privacy settings on their Netflix accounts, turn off autoplay manually (it can be disabled profile by profile in the account settings), and limit the personal information attached to kids’ profiles where possible.
The bigger question, whether subscription services like Netflix are quietly operating as advertising and data businesses, is now headed to a Texas courtroom.
