Texas sues Netflix over alleged user data spying and deceptive practices

Texas Attorney General Ken Paxton sues Netflix alleging spying on users and deceptive data collection practices case

Texas Attorney General Ken Paxton has filed a lawsuit against Netflix, accusing the streaming giant of “spying” on users, including children, and misleading consumers about its data collection practices, according to a report by Forbes Staff on May 11, 2026.

Filed in Collin County court, the complaint alleges Netflix violated the Texas Deceptive Trade Practices Act by misrepresenting how much user data it collects from paid subscribers. Prosecutors claim the company previously stated it had “zero interest” in advertising before later shifting its business model to include ad-supported plans in 2022 after allegedly accumulating large amounts of user data.

The lawsuit also raises concerns about Netflix’s handling of children’s profiles, alleging that while the platform avoids showing targeted ads to minors, it still collects behavioral data through the same tracking systems used for adults. It further accuses Netflix of using “dark pattern” design tactics, such as autoplay features and binge-watching prompts, to increase user engagement and screen time.

Paxton’s office argues that these practices amount to a “years-long bait-and-switch,” claiming Netflix monetized user attention and later leveraged data for advertising revenue worth billions of dollars. The company has not yet publicly responded to the allegations.

Netflix, founded in 2007 as a DVD rental and streaming platform, has grown into a global entertainment powerhouse with a market value exceeding hundreds of billions of dollars. It began introducing advertising-supported plans in 2022, marking a major shift from its earlier ad-free model promoted by former CEO Reed Hastings.

The case adds to growing regulatory scrutiny of major tech and streaming platforms over data privacy, algorithmic engagement, and consumer transparency.