“Netflix has built a surveillance program designed to illegally collect and profit from Texans’ personal data”: Streaming giant under fire as Ken Paxton alleges it secretly profited from detailed behavioral tracking of millions of users

Texas – Texas Attorney General Ken Paxton has launched a major legal battle against Netflix, accusing the streaming giant of secretly collecting enormous amounts of personal information from users — including children — while misleading customers about how their data was being handled behind the scenes.

The lawsuit paints a far more aggressive picture of Netflix than many subscribers may expect. According to Paxton’s office, the company was not simply operating as a streaming platform, but as a sophisticated data collection system designed to monitor user behavior, build detailed consumer profiles, and profit from sensitive information gathered without proper consent.

At the center of the case are allegations that Netflix tracked virtually everything users did on the platform. State officials claim the company recorded viewing habits, entertainment preferences, devices being used, household internet networks, application activity, and countless other behavioral details tied to subscribers.

The lawsuit argues that every click, pause, search, and viewing decision became part of a much larger data operation.

Even more controversially, the claims extend to children’s accounts.

According to Paxton’s office, Netflix allegedly gathered detailed information not only from adult profiles, but also from kids’ profiles that parents may have believed were safer and more protected.

Allegations of a Massive Data Operation

The lawsuit accuses Netflix of presenting itself publicly as a privacy-conscious and family-friendly company while secretly engaging in extensive data tracking and monetization practices.

State officials allege the company shared or disclosed user information to commercial data brokers and advertising technology firms, where the information could then be combined with data gathered from other online platforms to create highly detailed profiles of consumers.

The lawsuit describes a system where personal information was effectively circulated through what officials called Big Tech’s hidden advertising ecosystem.

Texas claims Netflix generated billions of dollars through these practices.

Attorney General Paxton delivered a blistering statement while announcing the lawsuit.

“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,” said Attorney General Paxton.

He continued by directly challenging the company’s public image.

“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. I will continue to work to protect Texas families from deceptive practices by Big Tech companies and ensure that corporations are held accountable under Texas law.”

The legal complaint also accuses Netflix of intentionally designing features meant to keep users watching for extended periods of time.

One major focus is the platform’s autoplay feature, which automatically starts the next episode or program without requiring viewers to actively choose another title.

According to the lawsuit, this feature was specifically engineered to manipulate user behavior and increase engagement, particularly among younger viewers.

Texas officials argue autoplay contributes to addictive viewing habits because it creates a nonstop stream of content that encourages prolonged watching sessions.

The state claims children were especially vulnerable to these tactics.

What Texas Wants From the Lawsuit

Paxton is pursuing the case under the Texas Deceptive Trade Practices Act, commonly known as the DTPA.

The lawsuit seeks several major penalties and changes.

Texas wants the courts to stop Netflix from unlawfully collecting and sharing user data. Officials are also asking for autoplay to be disabled by default on children’s profiles, arguing that families should not have to manually turn off features designed to maximize screen time.

In addition, the attorney general is seeking civil penalties and other court-ordered relief against the company.

The lawsuit represents another major escalation in Texas’ ongoing fight with large technology and media corporations over privacy, consumer protection, and children’s online safety.

Paxton has repeatedly targeted Big Tech companies in recent years, often accusing them of misleading consumers, censoring speech, or improperly handling personal information.

Now Netflix finds itself at the center of that growing legal and political battle.

The case could also add to broader national concerns over how streaming services collect user information and how much consumers actually understand about the data being gathered every time they log in, browse content, or simply watch a movie from their couch.

As the lawsuit moves forward, the allegations are likely to intensify scrutiny not only on Netflix, but on the entire digital entertainment industry and the increasingly massive business built around personal data.