The state of Texas has initiated legal action against Netflix, alleging that the streaming giant has engaged in the unauthorized collection of sensitive user data from both adults and children. The lawsuit, filed by the Texas Attorney General’s office, contends that the company systematically monitors user behavior to generate vast amounts of data points, which are subsequently monetized despite previous public assurances that the platform would remain free from such tracking practices.

At the heart of the complaint is the allegation that Netflix utilized “addictive” interface features—such as automatic content playback—to ensure prolonged user engagement. According to the filing, the company recorded billions of technical events, including specific user clicks and the duration of time spent on particular content. The state argues that this behavior contradicts the company’s past marketing, which positioned itself as a privacy-focused alternative to other major technology platforms that rely heavily on surveillance-based advertising.

The lawsuit further claims that beginning in 2022, Netflix began sharing this gathered information with third-party data brokers to bolster its revenue streams. Prosecutors assert that this activity constitutes a violation of the Texas Deceptive Trade Practices Act, which prohibits misleading conduct in commerce. The state is seeking a court order to force the company to delete the data collected from Texas residents, halt the use of such data for targeted advertising, and disable auto-play features by default on profiles designated for children.

In response to the legal challenge, a spokesperson for Netflix has dismissed the claims as meritless and based on a distorted understanding of the company’s operations. The firm maintains that it remains committed to protecting user privacy and adheres to all applicable data protection laws. As this case progresses, it adds to a growing wave of regulatory and legal scrutiny regarding the design choices of major digital platforms and their potential to foster compulsive usage habits among the public.