Texas asserted that Netflix has falsely assured consumers for years that it did not collect or share user data, while it actually monitored and sold viewers’ habits and preferences to commercial data brokers and advertising technology firms, generating billions annually.
The Los Gatos, California-based company was also accused of employing “dark patterns” to keep users engaged, including an autoplay feature that immediately starts a new show when the previous one concludes.
Netflix has not yet responded to requests for comment.
Numerous companies, especially in social media and other businesses with significant online footprints, are facing lawsuits alleging they covertly track users and sell the resulting data to third parties for advertising purposes.
Texas’ complaint referenced former Netflix Chief Executive Reed Hastings’ remark from 2020, stating, “we don’t collect anything,” as he aimed to differentiate Netflix from Amazon.com (AMZN.O), opens new tab, Facebook (META.O), opens new tab, and Google (GOOGL.O), opens new tab regarding data collection.
“Netflix’s endgame is clear and profitable: keep children and families fixated on the screen, gather their data while they remain engaged, and subsequently monetize that data for substantial profit,” according to the complaint filed in a state court in Collin County, near Dallas.
“When you watch Netflix, Netflix is watching you,” the complaint further stated.
Paxton mentioned that Netflix’s alleged surveillance breaches the Texas Deceptive Trade Practices Act.
He seeks to have the company eliminate data it obtained illegally, refrain from using that data for targeted advertising without users’ consent, and pay civil penalties of up to $10,000 for each violation.
Paxton, a Republican, is campaigning for the US Senate, challenging incumbent Republican Senator John Cornyn.
Also Read: Trump says US may revive ‘Project Freedom’, Iran ceasefire hangs ‘on life support’
First Published: May 11, 2026 11:43 PM IST
