Texas has launched a sweeping lawsuit against Netflix, accusing the streaming powerhouse of secretly tracking children, manipulating viewing behavior, and building an addictive platform designed to keep users watching for profit.

The legal action, filed Monday, places one of the world’s biggest entertainment companies at the center of a growing national battle over how tech platforms collect data and influence young audiences.

Texas Attorney General Ken Paxton alleges Netflix misled consumers for years by claiming it did not collect or share user data, while in reality tracking viewing habits, selling user preferences, and profiting from data brokers and advertising technology firms to generate billions in revenue.

Hidden Tracking Claims and “Dark Patterns”

The lawsuit claims Netflix quietly relied on so called “dark patterns” to maximize screen time, including autoplay features that automatically launch the next show once another ends, keeping viewers locked into continuous streaming.

Netflix did not immediately respond to requests for comment.

The case adds to a wave of legal challenges targeting tech companies over platform designs accused of being addictive and harmful to children. In March, a Los Angeles jury found Meta and YouTube liable for creating addictive products that harmed young users, a landmark decision that has triggered thousands of similar lawsuits expected to unfold later this year. Texas cites that ruling as a key precedent.

“Anti Big Tech” Image vs Alleged Reality

Paxton argues Netflix built its brand around being a safer alternative to data heavy social media platforms while allegedly engaging in similar data collection practices behind the scenes.

“For years, Netflix’s leadership told the world it had ‘zero interest’ in advertising … and styled itself as the anti-Big Ad Tech refuge,” according to the complaint. “But once Netflix had stockpiled user data under those promises, it flipped the script and built an ads business that mirrors everything it once attacked.”

The complaint also references former Netflix chief executive Reed Hastings, who reportedly said in 2020, “we don’t collect anything,” while distancing the company from rivals such as Amazon, Facebook, and Google.

“Endgame Is Simple and Lucrative” Allegations

Texas officials say the company’s business model was designed to hook families and children, extract behavioral data, and turn that information into profit.

“Netflix’s endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetize the data for a handsome profit,” according to Texas’s complaint filed in a state court in Collin county, near Dallas. “When you watch Netflix, Netflix watches you,” the complaint added.

Paxton says these practices violate the Texas Deceptive Trade Practices Act.

What Texas Is Demanding

The state is seeking aggressive penalties, including forcing Netflix to delete data allegedly collected illegally, blocking the company from using that data for targeted advertising without user consent, and imposing civil fines of up to $10,000 per violation.

Paxton, a Republican, is also in the middle of a high profile political campaign, challenging incumbent Republican Senator John Cornyn in the race for the US Senate.

The lawsuit now sets the stage for a major legal confrontation that could reshape how streaming platforms collect data, target viewers, and design features aimed at keeping users engaged.