Texas sues Netflix, alleges platform spied on kids and collected data
Texas wants to fine Netflix and force the platform to purge data it collected
Evercore ISI senior managing director Mark Mahaney joins Varney & Co. to discuss the departure of Netflix Chairman Reed Hastings and to address questions about the company’s future leadership and strategy.
The state of Texas announced a lawsuit against streaming giant Netflix on Monday, accusing the company of spying on children and other consumers by collecting their data without consent and designing the platform to be addictive.
Texas claims that Netflix has falsely represented to consumers that it didn't collect or share user data while it actually tracked and sold viewers' habits and preferences to commercial data brokers and advertising technology companies.
The lawsuit, filed by Texas Attorney General Ken Paxton, claims that "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."
The state of Texas announced a lawsuit against streaming giant Netflix on Monday. (Nikos Pekiaridis/NurPhoto via Getty Images)
"When you watch Netflix, Netflix watched you," Texas added in the lawsuit.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 85.45 | -2.04 | -2.33% |
The complaint quotes comments made by former CEO Reed Hastings who said in 2020, while he was still leading the streaming company, that "we don't collect anything," amid questions over Big Tech companies' data collection practices.
Netflix was also accused of quietly using "dark patterns" to keep users watching on its platform, such as an autoplay feature that starts a new show after a different show ends.
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Texas Attorney General Ken Paxton filed the lawsuit. (Cheney Orr/Reuters)
Paxton said in a press release that Netflix "has built a surveillance program designed to illegally collect and profit from Texans' personal data without their consent, and my office will do everything in our power to stop it."
The attorney general said he's charging Netflix under the state's Deceptive Trade Practices Act and seeks to require Netflix to stop the unlawful collection and disclosure of user data, require Netflix to disable autoplay by default on kid's profiles, and to secure injunctive relief and civil penalties.
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FOX Business reached out to Netflix for comment.
Reuters contributed to this report.