The streaming giant exploited users and their kids to make billions of dollars selling their data, a legal complaint alleges<\/p>\n
Texas Attorney General Ken Paxton has sued Netflix, accusing the streaming company of illegally spying and collecting data from users and their children without their knowledge or consent.
\nIn a statement published on Monday, Paxton characterized Netflix as \u201ca logging company\u201d that records and monetizes customers\u2019 behavioral data \u201cand occasionally streams movies.\u201d
\nThe lawsuit, filed in Collin County, Texas on Monday, cited past promises by Netflix executives not to exploit users\u2019 personal data for advertising purposes.
\nHowever, despite promising privacy, the company allegedly mined information spanning customers\u2019 viewing habits, preferences, devices, household networks, and application usage, according to the complaint. After building its customer base, Netflix allegedly began to sell user data to commercial data brokers, raking in billions of dollars annually, it said.
\nThe lawsuit also focused on children\u2019s accounts, which Netflix encouraged customers to make. The complaint alleged that the company kept users addicted using features such as autoplay and other \u201cdark patterns\u201d \u2013 design features that push users into actions they may not have intended, such as staying on a platform longer than intended, or agreeing to things they do not understand.
\n\u201cNetflix 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,\u201d Paxton said.<\/p>\n
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The streaming giant has denied the allegations. The suit is \u201cbased on inaccurate and distorted information,\u201d it told CBS News in a statement.
\nNetflix has steadily declined in market value and share price since peaking in 2025. The company has also increasingly faced accusations of pandering and \u2018woke\u2019 bias, including from public figures such as SpaceX CEO Elon Musk.
\nLast October, the billionaire called for users to \u201ccancel Netflix for the health of your kids\u201d in response to an animated show aimed at children seven or older featuring a trans character.<\/p>\n","protected":false},"excerpt":{"rendered":"
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