Texas has filed a lawsuit alleging that Netflix engaged in espionage by collecting user information without their consent.

Texas Attorney General Ken Paxston has announced that he has filed a lawsuit against Netflix, alleging that the company has been misleading consumers while earning billions of dollars (hundreds of billions to trillions of yen) by using their personal data.

Attorney General Ken Paxton Sues Netflix for Spying on Texas Kids and Consumers by Illegal Collecting Users' Data Without Their Knowledge or Consent | Office of the Attorney General
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-netflix-spying-texas-kids-and-consumers-illegally-collecting-users
https://i.gzn.jp/img/2026/05/12/texas-sues-netflix-for-spying/paxton.png
Netflix sued by Texas for allegedly spying on children, addicting users | Reuters
https://www.reuters.com/world/netflix-sued-by-texas-allegedly-spying-consumers-2026-05-11/

Texas accuses Netflix of spying on children in new lawsuit | Technology | The Guardian
https://www.theguardian.com/technology/2026/may/11/texas-sues-netflix-lawsuit

According to the Texas Attorney General's office, despite Netflix CEO Reed Hastings' past claim that the company does not collect or share extensive user data, Netflix tracks and records billions of user actions, including viewing habits, preferences, devices used, networks, and app usage.

Regardless of whether it's a regular account or a kids' account, the collected data is sold to brokers and combined with data collected from other platforms to build detailed consumer profiles, which are then used in advertising networks. Netflix is estimated to be earning hundreds of billions of yen annually from this data sales.

It has also been pointed out that Netflix incorporates an autoplay function and other features designed to make the platform addictive, including encouraging users, including children, to watch videos for extended periods.

Attorney General Paxton stated, 'Netflix has illegally collected personal data without the consent of Texas residents and built a monitoring program designed to profit from Texas residents. Our office will do everything in its power to stop this. Netflix is not the ad-free, child-friendly platform it claims to be. Rather, it has misled consumers while making huge profits by selling their personal data. I will continue to work to protect Texas residents from deceptive practices according to Big Tech and to ensure that companies are held accountable under Texas law.'

In response to the lawsuit, a Netflix spokesperson denied the allegations, stating, 'This is an unfounded lawsuit based on inaccurate and distorted information. Netflix takes its members' privacy seriously and adheres to privacy and data protection in all locations where it operates.'

Incidentally, Paxton is competing in a three-way race against incumbent Senator John Cornyn and Representative Wesley Hunt for the Republican Senate nomination in Texas in the November 2026 midterm elections. As of October 2025, Paxton has a lead with 28% support, Cornyn with 24%, and Hunt with 19%.

Texas Republican Senate Nomination Race is a Three-Way Battle; Governor Abbott Announces Candidacy for Fourth Term (USA) | Business Briefs - JETRO Overseas News - JETRO
https://www.jetro.go.jp/biznews/2025/11/91e539ec645e0b61.html