The streaming giant exploited users and their kids to make billions of dollars selling their data, a legal complaint alleges
Texas Attorney General Ken Paxton has sued Netflix, accusing the streaming company of illegally spying and collecting data from users and their children without their knowledge or consent.
In a statement published on Monday, Paxton characterized Netflix as “a logging company” that records and monetizes customers’ behavioral data “and occasionally streams movies.”
The lawsuit, filed in Collin County, Texas on Monday, cited past promises by Netflix executives not to exploit users’ personal data for advertising purposes.
However, despite promising privacy, the company allegedly mined information spanning customers’ viewing habits, preferences, devices, household networks, and application usage, according to the complaint. After building its customer base, Netflix allegedly began to sell user data to commercial data brokers, raking in billions of dollars annually, it said.
The lawsuit also focused on children’s accounts, which Netflix encouraged customers to make. The complaint alleged that the company kept users addicted using features such as autoplay and other “dark patterns” – design features that push users into actions they may not have intended, such as staying on a platform longer than intended, or agreeing to things they do not understand.
“Netflix is not the ad-free and kid-friendly platform it claims to be. Instead, it has misled consumers while exploiting their private data to make billions,” Paxton said.
The streaming giant has denied the allegations. The suit is “based on inaccurate and distorted information,” it told CBS News in a statement.
Netflix has steadily declined in market value and share price since peaking in 2025. The company has also increasingly faced accusations of pandering and ‘woke’ bias, including from public figures such as SpaceX CEO Elon Musk.
Last October, the billionaire called for users to “cancel Netflix for the health of your kids” in response to an animated show aimed at children seven or older featuring a trans character.
