Netflix Faces Texas Lawsuit Over Alleged Surveillance of Children and Designing the Platform to be Addictive

Texas Attorney General Ken Paxton sued Netflix for allegedly spying on children and collecting their data without prior consent. The Republican, who is running for the US Senate, also accused Netflix of designing its platform to be overly addictive for users.

A Netflix spokesperson pushed back on the allegations, citing former CEO Reed Hastings' previous public statements that Netflix does not collect data on its users in the manner of social media platforms like Facebook or search engine sites like Google.

Netflix Faces New Lawsuit

In his lawsuit, Paxton accused Netflix of falsely representing its consumers by saying that they do not collect and share user data when in fact they do. Paxton believes that the streaming giant not only tracks users' viewing habits, but it also sells the commercial data to brokers and advertising technology companies.

Netflix has also been accused of using 'dark patterns' that kept users hooked on their favourite shows. The so-called 'dark patterns' include Netflix's longstanding autoplay feature, wherein a new programme would automatically show after another one concludes. The autoplay feature is available on other streaming platforms as well, like Disney+ and HBO Max.

'Netflix's endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetize the data for a handsome profit. When you watch Netflix, Netflix watches you,' the complaint read.

Reports revealed that Paxton wants Netflix to release the data that it collected illegally and not to use it for targeted advertising without prior consent. He also claimed that Netflix's alleged surveillance violates the Texas Deceptive Trade Practices Act, so he is demanding that Netflix pay civil fines of up to $10,000 (£7,406) per violation.

Netflix Responds to Allegations

A spokesperson for Netflix released a statement regarding the lawsuit, saying that they plan to face it in court. They also called Paxton's allegations inaccurate and distorted information.

'Respectfully to the great state of Texas and Attorney General Paxton, this lawsuit lacks merit and is ​based on inaccurate and distorted information. Netflix takes our members' privacy ​seriously and complies with privacy and data protection laws everywhere we operate,' the spokesperson said.

The spokesperson added that Netflix has made it their mission to comply with all privacy and data protection laws wherever they operate. 'We look forward to addressing the Texas Attorney General's allegations in court and further explaining our industry-leading, kid-friendly parental controls and transparent privacy practices,' the spokesperson said.

Other companies like Facebook and YouTube have been found liable in lawsuits brought by state laws that bar all types of businesses from misleading the public, knowingly endangering children, or negligently designing addictive products.

Ad-Free and Ad-Supported Options Available

As of writing, Netflix remains the top choice for streaming platform with over 300 million subscribers. For years, the streaming giant has stayed at the top spot of the business, closely followed by Amazon Prime.

Netflix offers both ad-free and ad-supported subscriptions in the US. The company rolled out its ad-supported tier in 2022. This option requires a monthly subscription with four to five minutes of ads per hour. The ad-free option carries a higher monthly fee.