Netflix Data Lawsuit Filed by Texas
Netflix data lawsuit alleges children's viewing data was collected and shared with ad partners, raising legal and revenue risks for investors.
KEY TAKEAWAYS
- Texas AG Ken Paxton filed a state suit alleging deceptive data practices under the Texas DTPA.
- Complaint alleges Netflix logged about 5 petabytes daily and processed more than 10 million events per second.
- Suit seeks injunctions, data purges, autoplay disablement on kids' profiles and civil penalties up to $10,000 per violation.
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Netflix (NFLX) faces a lawsuit filed May 11, 2026, in Texas alleging the company collected children’s viewing data, shared it with advertising partners, and used autoplay to extend sessions. The suit seeks injunctions, data purges, and civil penalties.
Allegations and Legal Claims
Texas Attorney General Ken Paxton filed the suit in Collin County state court under the Texas Deceptive Trade Practices Act. It alleges Netflix collected about 5 petabytes of user behavioral logs daily and processed more than 10 million events per second, tracking viewing habits, searches, pauses, rewatches, device identifiers, location, and other interactions.
The complaint claims Netflix used "clean room" systems to match or share this data with advertising partners, including Experian, Acxiom, Google Display & Video 360, The Trade Desk, Yahoo DSP, Amazon DSP, and LiveRamp. It alleges children’s profiles, marketed as safe, were subject to the same data collection, with autoplay enabled by default to encourage longer viewing sessions.
The suit seeks injunctive relief to stop the collection and sale of consumer data, a court order to purge Texas user data, a ban on collecting children’s data without parental consent, and a requirement to disable autoplay by default on kids’ profiles. It also requests civil penalties of up to $10,000 per violation, with enhanced fines for elderly consumers.
The complaint asserts these data practices generated billions of dollars in annual revenue for Netflix. The company denies the allegations and says it complies with privacy and data-protection laws.
If enforced, the remedies would target the data flows tied to that revenue stream, potentially forcing product changes and new compliance controls affecting how Netflix stores, matches, and shares behavioral logs.
