Texas Sues Netflix For Allegedly ‘Spying’ On Customers

BreakingBusinessBreaking NewsTexas Sues Netflix For Allegedly ‘Spying’ On CustomersByZachary Folk,Forbes Staff. I cover breaking news.Follow AuthorMay 11, 2026, 02:18pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.ToplineTexas Attorney General Ken Paxton sued Netflix on Monday, alleging the streaming service was “spying” on customers, including children, and misleading them about how much data it was collecting and addicting customers with “dark pattern” features like autoplay.Texas Attorney General Ken Paxton claimed the streaming service’s data collection and targeted ads amounted to “spying” on customers.Getty ImagesKey FactsThe suit, filed in a court in Collin County, alleges the company violated the Texas Deceptive Trade Practices Act, which bars companies from using “false, misleading, or deceptive acts or practices,” by allegedly misrepresenting that it did not collect data from users with paid accounts.The suit quotes Netflix leadership claiming it had “zero interest” in pursuing advertising in the past, before changing their minds years later in 2022 once it had already “stockpiled user data under those promises.”It also accuses the company of telling “half the truth” regarding its kids profiles—alleging that even though it does not show children targeted ads, Netflix still “collects and analyzes a child’s behavioral interactions through the same surveillance programs it uses for adults.”The suit also claims Netflix misrepresents how it shares user data and that it uses “dark patterns” to addict customers to its platform, directly quoting marketing material from years past promoting “binge-watching” Netflix shows.The suit claims Netflix conducted a “years-long bait-and-switch,” first addicting customers to the platform, “mining” them for personal data, then finally selling that data back to advertisers to make “billions” per year. if (!window.cnxel) { window.cnxel = {}; window.cnxe...