Texas sues Netflix over how it tracks viewers
What's the story
The state of Texas has filed a lawsuit against Netflix, accusing the streaming giant of illegally collecting and sharing user data. The suit alleges that Netflix misled its users into believing it did not collect or share their data while actually tracking and selling information about their habits and preferences to commercial data brokers and advertising technology companies. This practice allegedly earns the company billions of dollars annually.
Manipulation allegations
Accusations of creating 'addictive' features
The lawsuit also accuses Netflix of creating "addictive" features that keep users glued to its platform. One such feature is the autoplay function, which automatically starts a new show when the current one ends. The Texas Attorney General's office said, "features that are designed to manipulate users to take actions Netflix wants them to take."
Children's privacy
Data tracking extends to kids' profiles
The lawsuit claims that Netflix's data tracking isn't limited to adult accounts but also extends to kids' profiles. The Attorney General's office said, "Every interaction on the platform became a data point revealing information about the user." This wide-ranging data collection practice has led the state of Texas to accuse Netflix of violating its Deceptive Trade Practices Act.
Company statement
Netflix responds to lawsuit
In response to the lawsuit, a Netflix spokesperson said that it "lacks merit" and is "based on inaccurate and distorted information." The company also emphasized its commitment to user privacy and compliance with data protection laws. "We look forward to addressing the Texas Attorney General's allegations in court and further explaining our industry-leading, kid-friendly parental controls and transparent privacy practices," the spokesperson added.
Legal action
Lawsuit demands end to data collection practices
The lawsuit seeks to stop Netflix from its alleged illegal collection and disclosure of user data. It also demands the company disable autoplay by default on kids' profiles. Paxton, who is running for the Republican nomination for US Senate in Texas, said, "Netflix is not the ad-free and kid-friendly platform it claims to be." He accused Netflix of misleading consumers while exploiting their private data for profit.