Netflix has been sued in Texas over claims that it collects data belonging to both children and adults in the US state without their consent, and uses an “addictive” design to keep them engaged on the platform.
Texas Attorney General Ken Paxton accused the streaming giant of “spying” on citizens, saying it “records and monetises billions” of pieces of information about how users behave on the platform, despite suggesting otherwise, according to a BBC report.
“Every interaction on the platform became a data point revealing information about the user,” his office said.
Netflix has rejected the allegations and says it will fight them in court, according to a statement shared with Reuters.
“With respect for the great state of Texas and Attorney General Paxton, this lawsuit has no merit and is based on inaccurate and distorted information,” a Netflix spokesperson told the news agency.
“Netflix takes our members’ privacy seriously and complies with privacy and data protection laws wherever we operate.”
BBC has contacted Netflix for comment.
“When you watch Netflix, Netflix watches you,” says the lawsuit filed on Monday by the Texas attorney general.
According to the filing, the company presents itself differently from other major tech firms in how it processes data and advertises to users.
It cites former CEO Reed Hastings, who said in 2019 and 2020 that Netflix did not collect and would not collect or monetise user data, such as for advertising purposes.
However, the lawsuit claims Netflix used a combination of “addictive” design features, such as autoplay and extensive user activity tracking, to keep users on the platform.
Among the billions of technical events recorded were what users clicked on, what they watched, and for how long, the filing adds.
In 2022, the company allegedly began “exploiting mountains of data quietly extracted from children and families kept glued to their screens” by sharing it with commercial data brokers to help generate billions in revenue.
“In short, Netflix sold subscriptions as an escape from Big Tech surveillance: pay monthly, avoid tracking,” the lawsuit states.
“Texans trusted that deal. Netflix broke it — building the same data collection system subscribers paid to escape.”
