Texas Attorney General Ken Paxton is taking aim at Netflix with a lawsuit that could become one of the biggest legal threats yet against Big Tech’s data collection empire. According to the filing, the streaming giant quietly transformed itself into a surveillance machine that tracked families, monitored children’s viewing habits, and allegedly funneled sensitive behavioral data into the hands of advertisers and data brokers while publicly insisting it respected consumer privacy.
The explosive lawsuit, filed in Collin County, Texas, accuses Netflix of deceiving subscribers for years by presenting itself as the “safe” alternative to Silicon Valley’s invasive tech platforms. While Americans believed they were simply paying for entertainment without the tradeoff of targeted advertising or behavioral tracking, Texas claims the company was allegedly building an extensive data pipeline behind the scenes.
At the center of the case are statements made by Netflix founder Reed Hastings, who repeatedly assured the public that Netflix was fundamentally different from companies like Meta and Google. The lawsuit points directly to Netflix investor communications from 2019, where the company described itself as “advertising free” and dismissed concerns about aggressive data collection as false speculation.
Texas says those promises were anything but truthful.
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