Netflix has been sued by Ken Paxton, the Texas Attorney General, who has alleged that the streaming giant has been illegally collecting data from users without their consent. He has further accused the platform of profiting from the collected data by selling it to advertisers.
The lawsuit further accused Netflix of promoting addictive viewing amongst its users. The Texas AG filed the case under the Texas Deceptive Trade Practices Act, which prohibits businesses from using false, misleading, or deceptive business practices.
Netflix sued by Texas for illegal data collection
The main reason why the Texas AG has sued Netflix is the allegation of illegally collecting user data.
In the lawsuit, Paxton has accused Netflix of illegally surveilling and collecting personal data from Texan users.
“Netflix has built a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent.”
He has also claimed that Netflix is profiting from the data by selling it to advertisers and data brokers. This is despite Netflix claiming in the past that it does not collect or share user data.
Paxton has further alleged that the illegal surveillance and data collection are targeted at kids’ profiles as well.
“Every interaction on the platform became a data point revealing information about the user. This tracking applies to not only adults’ accounts but also kids’ profiles.”
Dark patterns that allegedly foster addictive viewing
In addition to illegal data collection, Paxton has also sued Netflix for promoting addictive viewing.
“The company also designs its platform to be addictive. This is accomplished using features that are designed to manipulate users to take actions Netflix wants them to take.”
The addictive features in question include the autoplay function, which he has claimed “creates a continuous stream of content intended to keep users, including children, watching for extended periods of time.”
Netflix has denied the accusations by Texas
The streaming service has yet to respond to the lawsuit in court, but it has defended itself against the allegations.
“Netflix takes our members’ privacy seriously and complies with privacy and data protection laws everywhere we operate.”
It remains to be seen whether the case will proceed, especially with some critics viewing it as politically motivated; Attorney General Paxton is currently engaged in a high-stakes republican primary race for U.S. Senate.
However, despite the timing, the case is not without merit, especially given Netflix’s past public statements where the streaming giant had claimed it does not collect or monetize user data.
The claim for addictive viewing has also been successfully argued in court in the past, with a California jury finding YouTube and Meta liable for designing intentionally addictive platforms.