Texas sued Netflix on Monday, accusing the streaming giant of spying on children and designing its platform to be addictive. Attorney General Ken Paxton alleged that Netflix falsely claimed it did not collect or share user data, while actually tracking and selling viewers' habits and preferences to data brokers and ad tech companies, generating billions annually.
Dark Patterns and Autoplay
The lawsuit claims Netflix used 'dark patterns,' including an autoplay feature that automatically starts a new show when one ends, to keep users, especially children, glued to the screen. Netflix did not immediately respond to requests for comment.
Precedent from Meta and YouTube Case
Texas's complaint follows a trend of lawsuits against tech companies over addictive features. In March, a Los Angeles jury found Meta and YouTube liable for designing addictive products that harmed young people, setting a precedent. Texas cites this verdict in its case.
Data Collection Allegations
Paxton stated that Netflix marketed itself as a safe haven from data-hungry social networks but engaged in similar information harvesting. The complaint quotes former CEO Reed Hastings saying in 2020, 'we don't collect anything,' while distinguishing Netflix from Amazon, Facebook, and Google. However, Texas alleges that Netflix later built an ads business using accumulated user data.
'Netflix's endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetize the data for a handsome profit,' the complaint reads. It adds, 'When you watch Netflix, Netflix watches you.'
Legal Action and Penalties
Paxton seeks to force Netflix to purge illegally collected data, obtain user consent for targeted advertising, and pay civil fines of up to $10,000 per violation under the Texas Deceptive Trade Practices Act. Paxton, a Republican, is running for the US Senate against incumbent John Cornyn.
