Texas sues Netflix for spying on users, addicting kids

Netflix is facing a major lawsuit in Texas, with the state's top prosecutor accusing it of illegally collecting data from children and adults without their consent. 

The streaming giant has strongly denied the allegations, vowing to challenge them in court.

'When you watch Netflix, Netflix watches you'

"When you watch Netflix, Netflix watches you," states an explosive complaint filed on Monday by Texas's top prosecutor, Ken Paxton. The Attorney General accuses the service of "spying" on citizens, alleging it "records and monetises billions" of data points about how subscribers behave. 

According to the BBC, his office claims "every interaction on the platform became a data point revealing information about the user," directly contradicting the company's public image. 

The lawsuit points to past statements from former boss Reed Hastings, who in 2019 and 2020 claimed Netflix would not sell user data for advertising.

'The system subscribers paid to escape'

The state's petition alleges Netflix used "addictive" design features and extensive user "logging" to keep people fixated on their screens. Features like auto-playing content and so-called "dark patterns" are said to have been used to maximise data collection, particularly from younger audiences. 

The filing claims billions of technical events were recorded, including what users click on, and for how long. It alleges that in 2022, the company began "leveraging the mountains of data it quietly extracted from the children and families it kept fixated on their screen" by sharing it with commercial data brokers to raise billions in revenue. "Netflix sold subscriptions to its programming as an escape from Big Tech surveillance," the lawsuit states. "Netflix broke it."

Netflix rejects claims

Netflix has forcefully rejected the accusations. A spokesperson told Reuters the lawsuit is meritless. "Respectfully to the great state of Texas and Attorney General Paxton, this lawsuit lacks merit and is based on inaccurate and distorted information," the spokesperson said. 

"Netflix takes our members' privacy seriously and complies with privacy and data protection laws everywhere we operate." The company confirmed it will challenge the matter in court.

The suit alleges a violation of the Texas Deceptive Trade Practices Act, which forbids "false, deceptive, or misleading acts". 

The state is seeking to prevent Netflix from continuing its alleged data collection without explicit user consent and is also demanding that the autoplay feature be disabled by default on all children's profiles.