State of Texas is suing Netflix - and demands common feature used by millions stops
Netflix is being sued by the state of Texas - with the streaming giant accused of being too addictive, and illegally monetising its users for ‘billions’ of dollars.
In a bombshell statement, among the claims cited include allegations of the company spying on children and collecting users’ data without knowledge or consent. It is also claimed the platform’s interface is a vehicle to “manipulate” and is deceptively designed to be addictive.
“Netflix’s endgame is simple and lucrative,” the complaint reads. “Get children and families glued to the screen,harvest their data while they are stuck there, and then monetize the data for a handsome profit.
"When you watch Netflix, Netflix watches you," it added.
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The state has also accused Netflix of quietly using "dark patterns" to keep viewers engaged, including the autoplay feature which will automatically begin another show after one has ended.
As well as seeking to disable that option on children’s profiles - which is one of the most evident features of the streaming platform - the lawsuit also wants to stop the “unlawful collection and disclosure of user data” and “secure other injunctive relief and civil penalties.”
The claim comes after Netflix CEO Reed Hastings said in a 2020 earnings call that “we (Netflix) don’t collect anything,” when speaking on other tech giants such as Google, Facebook and Amazon.
The state’s attorney general, Ken Paxton, who is currently running for US Senate in the Texas Republican primary, claims that Netflix’s collection of user data violates Texas’ Deceptive Trade Practices Act.
“Netflix has built a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent, and my office will do everything in our power to stop it,” Paxton said. “Netflix is not the ad-free and kid-friendly platform it claims to be.
“Instead, it has misled consumers while exploiting their private data to make billions. I will continue to work to protect Texas families from deceptive practices by Big Tech companies and ensure that
corporations are held accountable under Texas law.”
In response, a Netflix spokesperson denied any wrongdoing from the company, telling Reuters: "Respectfully to the great state of Texas and Attorney General Paxton, this lawsuit lacks merit and is based on inaccurate and distorted information.
"Netflix takes our members’ privacy seriously and complies with privacy and data protection laws everywhere we operate."
Netflix have recently lost a court battle in Italy and were forced to pay back subscriptions after ruling that price increases did not comply with Italian law.
The Texas lawsuit comes in an ecosystem of increasing scrutiny over child protection online, including the design of apps and services.
Australia was the first to implement a social media ban for children aged under 16 this year, but several European countries are considering their own, while US Congress is also currently advancing several measures of their own.
In the digital world, a number of companies are now also facing lawsuits around data collection and the subsequent selling of the data to third parties, who use it for advertising.
Kristian Walsh