Texas Attorney General Ken Paxton filed a lawsuit against Netflix this week, accusing the streaming giant of secretly collecting and selling personal data from millions of Texans, including children, without consent. The action comes as Big Tech companies face mounting legal challenges over privacy violations and addictive platform design.

Netflix Accused of Building Surveillance Program

According to Paxton’s office, Netflix misled consumers for years by claiming it did not collect extensive user data. The lawsuit alleges the company operates as a data logging operation that tracks every user interaction, including viewing habits, device information, household networks, and application usage. This surveillance extended to children’s profiles, with the company allegedly recording billions of behavioral events to monetize personal information. Netflix reportedly shared this data with commercial brokers like Experian and Acxiom, entities completely unrelated to entertainment services.

Data Sold to Advertising Giants

The filing states Netflix partnered with major advertising platforms including Google Display & Video 360 and The Trade Desk, enabling user data to be merged with information collected outside the platform. Paxton accused Netflix of earning billions annually through this operation, calling it a bait-and-switch strategy that deliberately addicted families to mine their personal information. The lawsuit specifically criticized Netflix’s auto-play function, which encourages extended viewing periods, particularly among children. Texas law prohibits such deceptive practices, according to the attorney general.

Netflix Denies Allegations

A Netflix spokesperson told NBC News the lawsuit lacks merit and relies on inaccurate information. The company stated it takes member privacy seriously and complies with privacy laws wherever it operates. Netflix highlighted its parental controls and transparent privacy practices in its defense. However, the lawsuit arrives amid broader scrutiny of tech companies. In March, a California jury found YouTube and Meta negligent for using design features promoting addiction in minors. Meta paid $4.2 million in damages while YouTube paid $1.8 million. A separate New Mexico case resulted in Meta paying $375 million for failing to protect users from predators.

Growing Legal Pressure on Tech Companies

The Texas action reflects increasing state-level enforcement against technology companies over data collection practices. Meta CEO Mark Zuckerberg testified during the California trial, denying his platform caused plaintiff mental health issues. The series of verdicts and lawsuits signal mounting legal risks for companies whose business models depend on extensive user tracking. Texas officials argue Netflix violated state consumer protection laws by concealing the true nature of its data collection while presenting itself as a simple entertainment service. The outcome could establish precedent for how streaming platforms handle subscriber information going forward.