Netflix faces lawsuit as Texas attorney general accuses streamer of tracking families and children

The lawsuit claims Netflix gathered detailed viewing data while quietly expanding advertising systems for users

Texas Attorney General Ken Paxton has launched a major lawsuit against Netflix, accusing the streaming giant of secretly collecting user data, tracking children and designing its platform to keep viewers watching for long periods through addictive features.

The lawsuit, filed in Texas District Court in Collin County on May 11, alleges that Netflix violated the Texas Deceptive Trade Practices Act by misleading subscribers about privacy protections while building a large scale advertising and behavioural tracking system behind the scenes.

According to the filing, Texas claims Netflix spent years presenting itself as an alternative to surveillance driven technology companies before introducing its advertising supported subscription tier in late 2022. State lawyers argued that consumers believed their monthly payments protected them from extensive tracking practices often associated with major social media and advertising firms.

The lawsuit specifically criticises Netflix’s autoplay feature, which automatically starts the next episode or programme after a short countdown. Texas officials argued that the function was deliberately designed to encourage prolonged viewing sessions, including among younger users and families.

Court documents also allege Netflix gathered detailed interaction data from subscribers, including playback activity, clicks, search behaviour and viewing duration. The filing further claims the company worked with advertising and data technology firms including Google Display & Video 360 and The Trade Desk to strengthen advertising operations connected to viewer behaviour.

Texas officials stated that many subscribers were unaware of the extent of the alleged data collection. The lawsuit claims Netflix only gradually expanded disclosures in its privacy policies after increased international scrutiny, including investigations by European regulators.

Netflix strongly rejected the allegations in a public statement. A spokesperson for the company said the claims were based on “inaccurate and distorted information” and insisted the streaming service complies with privacy and data protection laws in every country where it operates.

The company also defended its parental controls and child safety systems, describing them as industry leading tools designed to help families manage viewing activity and account settings.

The legal complaint arrives during a politically charged period in Texas, with Paxton currently campaigning in the Republican primary race for a United States Senate seat. Critics online quickly accused the attorney general of turning the lawsuit into a political spectacle, while supporters argued that streaming services and technology companies should face greater scrutiny over data collection practices.

Netflix introduced its lower priced advertising tier after years of resisting commercials on the platform. Former chief executive Reed Hastings previously promoted the company as a subscription based alternative to advertising driven internet businesses, comments that Texas lawyers heavily referenced throughout the lawsuit.

The case also raises broader questions about how streaming platforms collect audience data in the modern entertainment industry. Nearly every major service now uses recommendation systems and viewer analytics to personalise content and advertising experiences.

Texas is seeking financial penalties, additional consumer disclosures and restrictions on certain features involving children’s accounts. The state also wants autoplay disabled by default on profiles created for younger viewers.