Netflix Faces Lawsuit in Texas for Allegedly Tracking Children’s Data

Netflix has been sued by the state of Texas over allegations that the streaming giant illegally collected user data; including information from children, while deliberately designing its platform to keep users addicted.

The lawsuit, filed by Texas Attorney General Ken Paxton, accuses Netflix of secretly tracking viewers’ habits and preferences and allegedly sharing or selling the data to advertising technology firms and commercial data brokers without users’ consent. Texas claims the company violated the Texas Deceptive Trade Practices Act.

According to court documents, Texas alleges that Netflix falsely assured users for years that it did not collect or share personal data. The complaint points to a 2020 statement by Netflix co-founder Reed Hastings, who reportedly said the company did not collect customer data in the same way as major tech firms.

The state also accused Netflix of using so-called “dark patterns”  platform features designed to encourage prolonged viewing. One feature highlighted in the complaint is autoplay, which automatically starts another show or episode once the previous one ends. Texas argues that such features were intentionally created to increase screen time, especially among children and families.

In the filing, Texas claimed Netflix’s “endgame” was to keep users, particularly children, glued to their screens while harvesting valuable behavioral data for profit. The lawsuit seeks financial penalties of up to $10,000 per violation, the deletion of allegedly unlawfully collected data, and restrictions on targeted advertising without user consent.

Netflix has denied the allegations. In a statement, the company described the lawsuit as lacking merit and said it was based on “inaccurate and distorted information.” The streaming company maintained that it complies with privacy and data protection laws globally and said it would challenge the claims in court.

The lawsuit adds to growing legal scrutiny facing major tech and media platforms over concerns about user privacy, children’s safety, and addictive digital design.