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Texas Attorney General files lawsuit against Netflix over alleged data privacy violations

Ken Paxton accuses Netflix of secretly selling user data and manipulating viewer behaviour through platform design.

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: Engadget · original
Texas AG sues Netflix, claiming the streaming service collects user data without consent
Legal action targets streaming giant's data practices and autoplay features

Texas Attorney General Ken Paxton has initiated legal proceedings against Netflix, alleging the streaming service collects user data without consent and distributes it to commercial brokers. The complaint, filed in Texas, asserts that the streaming giant has operated a surveillance programme that generates billions of dollars annually from the alleged sale of consumer information.

The lawsuit places specific emphasis on the treatment of children's accounts, arguing that Netflix has gathered data from minors despite previous assertions by the company to the contrary. Paxton contends that the platform is designed to manipulate viewers, including young users, by utilising features such as autoplay to extend time spent on the service. The Attorney General states that this alleged manipulation serves to keep viewers engaged longer, thereby increasing the value of the data collected.

According to the filing, the company profits from this surveillance programme by secretly selling personal data to online advertising businesses and commercial brokers. Paxton argues that this collection and distribution of Texans' personal data occurs without their consent, violating state privacy interests. The Attorney General's office has vowed to utilise all available legal mechanisms to halt these practices.

In response to these allegations, the lawsuit seeks several specific remedies from the court. The primary requests include an order to disable the autoplay feature by default across the platform. Additionally, the suit demands the removal of all children's profiles and a complete cessation of the alleged collection and distribution of user data.

The case represents a significant challenge to Netflix's stated data practices and highlights growing regulatory scrutiny over how streaming services manage user information. While Netflix has previously defended its data handling protocols, this legal action introduces new claims regarding the intent behind platform design and the financial scale of alleged data sales. The outcome of the litigation will depend on the court's assessment of the evidence presented regarding the company's operations in Texas.

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