## Texas AG Accuses Netflix of Illicit Data Practices **Ken Paxton**, the Attorney General of Texas, announced a lawsuit against **Netflix** on Monday, accusing the company of violating user privacy by allegedly collecting and sharing subscriber data without explicit consent. The lawsuit, available [here](https://www.texasattorneygeneral.gov/sites/default/files/images/press/N%20Petition.pdf?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=), outlines several instances where **Netflix** leadership purportedly claimed the company does not engage in such practices. However, the lawsuit asserts that **Netflix** has been using "intentional engineering to track and log users’ viewing habits, preferences, devices, household networks, application usage, and other sensitive behavioral data." This data collection allegedly extends to children's profiles, enabling the pinpointing of user locations. ## Data Allegedly Shared with Third Parties The press release accompanying the lawsuit states that **Netflix** users' data is being "shopped across Big Ad Tech's shadowy network." The suit further claims that **Netflix** generates billions of dollars annually by secretly selling consumer data. According to the lawsuit, **Netflix** collects and shares data revealing user behavior, including clicks, viewing duration, replays, skips, location, app usage, and connected devices. This data is allegedly merged with demographics and viewing habits to create granular audience segments for targeted advertising. **Netflix** is accused of sharing user data with third-party advertisers, data brokers like **Experian** and **Acxiom**, and ad tech platforms such as **Google Display & Video 360**. This allows user data to be integrated with other information collected by these third parties. ## Concerns Over Children's Data The lawsuit also raises concerns about **Netflix**'s collection of data from children's profiles. While **Netflix** markets these profiles as a "safe area" for children under 12 and claims not to show targeted ads, the lawsuit alleges that the company "aggressively" collects behavioral data from these accounts. ## Netflix's Response and Data Volume As of the time of the report, a **Netflix** spokesperson had not responded to requests for comment. The lawsuit claims that **Netflix** collects approximately 5 petabytes of user behavior logs each day. ## Alleged Privacy Policy Deficiencies **Paxton** argues that **Netflix**'s privacy policy is inadequate and fails to fully inform users about the extent of its data collection practices. While the privacy policy was updated in 2024 following concerns raised by Dutch regulators, the lawsuit contends that it remains "vague, deceptive, and incomplete." ## Netflix Engineer Quote The lawsuit also highlights a 2016 conference where a **Netflix** engineer reportedly stated that **Netflix** is a “logging company that occasionally streams movies.” html <iframe width="560" height="315" src="https://www.youtube.com/embed/WuRazsX-MBY" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>