Texas Attorney General Ken Paxton has filed a lawsuit against Netflix, accusing the streaming service of illegally collecting and selling personal data from subscribers and their children. The complaint, lodged in Collin County, alleges that Netflix operates as a “logging company,” harvesting detailed information about users’ viewing habits, device usage, household networks and app interactions, and then monetising that data through commercial brokers.
According to the filing, Netflix previously assured regulators and the public that it would not use subscriber data for advertising purposes. Despite those assurances, the complaint says the company built extensive profiles of its customers and began selling the information for billions of dollars each year. The suit also highlights Netflix’s encouragement of children’s accounts and contends that the platform employs “dark‑pattern” design features—such as autoplay and other interface tactics—that keep viewers, including minors, engaged longer than intended.
Paxton described the allegations as evidence that Netflix is “not the ad‑free and kid‑friendly platform it claims to be.” He argued that the company misled consumers while profiting from private data, thereby violating Texas consumer‑protection statutes.
Netflix’s legal team responded that the complaint relies on “inaccurate and distorted information.” In a statement to CBS News, the company denied wrongdoing and said it complies with all applicable privacy laws.
The case arrives as Netflix’s market value has declined since its peak in 2025, and the company has faced increasing scrutiny over content decisions and perceived bias. Public figures, including SpaceX founder Elon Musk, have recently called for a boycott of the service over programming featuring transgender characters aimed at children.
The lawsuit seeks injunctive relief to stop the alleged data practices and monetary damages for affected consumers. If successful, the action could compel Netflix to alter its data‑collection methods and increase transparency about how it handles user information, particularly for minors.
The filing underscores a broader trend of regulators examining how digital platforms gather and monetize personal data. As authorities in the United States and elsewhere intensify oversight of tech companies, the outcome of Paxton’s case may influence privacy practices across the streaming industry. Further developments are expected as the case proceeds through the Texas courts.
