Netflix is the subject of a lawsuit in the American state of Texas, accused of covertly collecting and profiting from user data, including that of children, without their consent.
The litigation was initiated by Ken Paxton, who asserted the service deceived customers about the utilization of their personal data. It is alleged that Netflix tracked billions of user engagements and utilized the collected data to optimize viewer engagement and ad earnings.
According to the Texas Attorney General’s office, “Every single click, pause and viewing habit” was a valuable piece of behavioral data for the business. It further claims Netflix used “addictive” features, such as continuous streaming and curated content suggestions, to boost viewer attention.
The suit contends Netflix presented itself to consumers as a distinctive tech platform and swore off monetizing its user data, citing previous remarks from ex-Netflix co-founder Reed Hastings that the service would not gather or trade user information for advertisements.
Texas’ claims say Netflix subsequently shared user-specific data with data brokers to supplement its expansion in the advertising sphere and bolster its earnings.
The lawsuit is further accusing the streaming provider of gathering granular data from families and children about their viewership habits and behaviors, with insufficient transparency to its subscribers about the scale of this tracking.
Netflix has flatly rejected these accusations and has vowed to combat the claims. A representative from the streamer called the suit “without merit,” and affirmed its dedication to complying with privacy and data protection laws internationally.
This legal action contributes to an increase in worldwide investigations into the practices of major digital companies regarding the gathering, storage, and monetization of user data.
