Netflix is facing a lawsuit in the US state of Texas, being accused of spying on users. The lawsuit accuses the streaming giant of harvesting personal data without proper consent and deploying manipulative design tactics known as “dark patterns” to keep viewers hooked to the platform. Netflix, however, has responded to the allegations and shared its stand on the matter.
In a statement to Reuters, Netflix states, “This lawsuit lacks merit and is based on inaccurate and distorted information.” The company stated that it takes its “members’ privacy seriously and complies with privacy and data protection laws everywhere.”
The company also maintains that its data practices are transparent and fully compliant with applicable laws.
Netflix Inc (NFLX) was trading at $85.45 USD at the time of publishing.
Netflix’s Texas lawsuit: What it alleges
Texas Attorney General Ken Paxton’s office filed the complaint, claiming that Netflix’s business model revolves around getting families and children “glued to the screen,” collecting extensive viewing data, and then monetising that data for profit. The lawsuit has been filed under Texas’ Deceptive Trade Practices Act and seeks fines per violation plus data‑purge orders.
The lawsuit states, “When you watch Netflix, Netflix watches you.”
According to the complaint, Netflix aggressively tracks user behaviour, including:
– What users watch and how quickly they finish shows
– Pauses, rewinds, and skipping patterns
– Viewing times, frequency, and session lengths
The lawsuit states that this data is allegedly used to build detailed user profiles that power Netflix’s highly personalised recommendation system. The state claims the company uses subtle “dark patterns”, deceptive or manipulative interface designs, to encourage binge-watching and make it harder for users to disengage.
The lawsuit particularly highlights concerns over the impact on children and families, accusing Netflix of prioritising engagement and data collection over user well-being.
Netflix not the only name in trouble
Prior to Netflix, we have seen other Big Tech companies also facing mounting legal pressure over similar accusations of excessive data collection and manipulative practices.
Meta has been hit with multiple lawsuits across US states for allegedly exploiting young users through Instagram and Facebook’s algorithm-driven feeds. The company is accused of using dark patterns and addictive features to maximise screen time among children and teenagers while harvesting detailed behavioural data.
Similarly, YouTube (owned by Google) continues to defend itself against claims that it knowingly promotes harmful, addictive content to minors and fails to protect user privacy adequately.
TikTok has come under intense scrutiny in both the United States and Europe for its data collection practices and highly engaging recommendation system. Several states have sued the platform, arguing that it poses risks to youth mental health and national data security.
Apple and Amazon have also faced criticism and regulatory investigations regarding in-app tracking, default settings that encourage data sharing, and the design of their digital ecosystems that keep users locked in.