Texas sues Netflix over alleged sale of kids’ data
The Texas Attorney General has filed a privacy lawsuit against Netflix, alleging the streaming company collected and sold users' personal data, including that of children, despite previous assurances that its revenue model did not involve data collection or advertising. The complaint claims Netflix developed a "behavioral-surveillance program" and used "dark patterns" to gather extensive user and kids' data, which it then leveraged for digital advertising after pivoting its monetization strategy in 2022.
Key Takeaways
- Paxton’s office filed the complaint Monday in Texas District Court, Collins County.
- The suit says Netflix founder and former CEO Reed Hastings had long said the company’s revenue model was subscriptions, not ad-driven data use.
- Texas alleges Netflix built a “behavioral-surveillance program of staggering scale” and collected data on what users click, pause, replay, skip, and what devices they use.
- The complaint says Netflix’s 2022 shift into digital advertising let it sell user and kids’ data to online advertisers, data brokers, and ad-tech platforms.
- Texas is seeking civil penalties, disgorgement, injunctive relief, and attorneys’ fees under the Texas Deceptive Trade Practices Act.
Why It Matters
If the complaint survives, Netflix faces direct pressure on the data practices behind its ad business, not just its consumer-facing privacy disclosures. The filing also extends Texas’ broader enforcement pattern: Paxton’s office has already sued TikTok, Allstate, PowerSchool, and several smart-TV makers, and it secured a $1.375 billion Google settlement in May 2025. For streaming platforms, the immediate watch item is whether the case narrows how aggressively they can collect behavioral data from users and children while monetizing via advertising.
Read full article at news.bloomberglaw.com
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