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Executive Summary

Texas Attorney General Ken Paxton sued Netflix, alleging the streaming company collects user data without consent and merges on-platform user information with off-platform data from ad-tech partners like Google and The Trade Desk. The lawsuit, filed under state consumer protection law, seeks to force Netflix to delete unlawfully collected data, stop using it for targeted advertising without explicit consent, and pay civil fines of up to $10,000 per violation. Netflix called the lawsuit meritl...

data-collection

What Happened

On May 12, 2026, Texas Attorney General Ken Paxton filed a lawsuit against Netflix under the Texas Deceptive Trade Practices Act, alleging the company collects user data without consent and operates what the complaint characterizes as surveillance infrastructure processing more than 10 million events per second. The lawsuit claims Netflix merges on-platform user behavior data with off-platform information obtained through advertising technology partners including Google Display & Video 360 and The Trade Desk. Netflix has denied the allegations, calling the lawsuit meritless and based on inaccurate information.

Who Is Affected

The lawsuit concerns Netflix users in Texas, with particular emphasis on children whom the complaint alleges are targeted by autoplay features designed to extend viewing sessions. The state estimates millions of Texas residents may be affected. The complaint references Netflix's collection of approximately 5 petabytes of user behavior logs daily, suggesting the data practices apply to the platform's broader user base.

Why It Matters

This case represents an expansion of state-level enforcement targeting streaming platforms' data collection practices, an area that has received limited federal regulatory attention compared to social media companies. Texas is seeking civil penalties of up to $10,000 per violation under consumer protection law, a framework that could establish precedent for how streaming services must handle user consent and data sharing with advertising partners. The lawsuit's reliance on publicly disclosed engineering information rather than sealed discovery documents also demonstrates how companies' own technical disclosures can form the basis for regulatory action.

What You Should Do

Netflix users in Texas should review their account privacy settings and consider whether they want to continue using the service while this litigation proceeds. Users can contact Netflix customer service to request information about what data the company has collected about them and whether it has been shared with third-party advertising partners. Parents concerned about children's viewing habits can disable autoplay features in Netflix account settings under playback controls and consider setting up separate profiles with viewing restrictions.

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Texas Attorney General Ken Paxton sued Netflix, alleging the streaming company... - Industry | PrivacyWire