Tech

Texas Attorney General files lawsuit against Netflix over data surveillance and advertising claims

The legal action, grounded in the Texas Deceptive Trade Practices Act, seeks to block user data collection and mandate changes to autoplay settings on children's profiles.

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: The Verge · original
Texas sues Netflix for advertising ‘bait and switch’ and spying
State alleges streaming giant misled consumers regarding ad-free status and child safety while harvesting personal data

Texas Attorney General Ken Paxton has initiated legal proceedings against Netflix, alleging the streaming service engaged in deceptive advertising and unlawful data surveillance. Filed on Monday, the lawsuit contends that Netflix has abandoned its public promise to remain an ad-free and safe platform for children, instead exploiting private user data to generate significant profits.

The complaint asserts that Netflix quietly implemented a behaviour-surveillance programme designed to collect personal information without consent. According to the filing, this system incorporates allegedly addictive features, such as autoplay, intended to keep viewers glued to the screen while harvesting data for profit. Paxton argues this approach has turned the company's back on its previous criticisms of the broader ad-tech community.

Central to the legal action is a violation of the Texas Deceptive Trade Practices Act. The Attorney General's office accuses Netflix of a bait and switch strategy, misleading users about the nature of their service while opening Texans' data for inspection by external entities. Paxton states that the company has not only misled consumers but has also exploited their private data to make billions, a claim made within the context of the legal filing.

In response to these allegations, the lawsuit requests that the court block the unlawful collection and disclosure of user data. Furthermore, Paxton is seeking an order that mandates autoplay be disabled by default on children's profiles to address concerns regarding the safety and suitability of the platform for young users.

While the lawsuit outlines these specific grievances, it relies on the assertions made in the legal filing rather than independent verification of the financial figures or the precise technical mechanisms involved. The Attorney General's office maintains it will use all available powers to stop the alleged illegal practices, though the claims remain unproven in court at this stage.

This development marks a significant escalation in regulatory scrutiny of major streaming services regarding their data practices and advertising models within the state.

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