Netflix is facing a lawsuit in the US state of Texas, after authorities accused the company of collecting personal data from users, including children, without their consent. It even uses an addictive design to keep users hooked to the platform.
Texas Attorney General Ken Paxton accused the online streaming giant of "spying" on citizens, saying it "records and monetizes billions" of information on how users behave on the platform, despite suggesting otherwise.
“Every interaction on the platform became a data point that revealed information about the user,” his office said.
Netflix has denied the claims and stated that it will challenge them in court.
"With all due respect to the great state of Texas and Attorney General Paxton, this lawsuit is without merit and is based on inaccurate and distorted information," a Netflix spokesperson told Reuters news agency.
"Netflix takes our members' privacy seriously and complies with privacy and data protection laws wherever we operate."
"When you watch Netflix, Netflix watches you," the lawsuit filed Monday by the Texas attorney general states.
According to the lawsuit, the streaming company was portrayed as being different from other big tech companies in the way it processed data and advertised to users.
It quotes the company's former CEO, Reed Hastings, who in 2019 and 2020 stated that the company did not collect and would not make money from user data, such as for selling advertising.
But the lawsuit says Netflix used a combination of addictive design features, such as auto-play content, and extensive recording of user activity to keep people on the platform.
Among the billions of technical events recorded were those where users clicked, paused or stayed for a certain amount of time, the lawsuit adds.
As the BBC writes, in 2022, the company also reportedly began “exploiting the mountains of data it had secretly extracted from screen-obsessed children and families,” sharing this with commercial data brokers to help generate billions of dollars in revenue.