Texas has escalated a long-running data privacy inquiry, accusing Netflix of systematically harvesting personal data from children without consent. State officials allege that the streaming giant violated both federal privacy laws and Texas consumer protections by tracking the viewing habits and biometric information of minors.
The Texas Attorney General’s office, which has led a multi-state investigation into major tech firms, filed a petition late Tuesday claiming that Netflix’s data collection practices went “far beyond what is necessary for delivering a service.” The probe focuses on the company’s use of tracking tools that recorded not only what children watched but for how long, when they paused, and how they scrolled through menus. Critics argue this data can be used to build detailed psychological profiles.
Netflix has denied the allegations, stating that its terms of service prohibit users under 18 from creating accounts without parental permission. In a statement, the company said it “takes children’s privacy seriously” and complies with all applicable laws, including the Children’s Online Privacy Protection Act. However, Texas officials claim that the company’s default settings and recommendation algorithms effectively mine children’s data regardless of age restrictions.
The probe is part of a broader crackdown by Texas and several other states on tech companies’ data practices. Last year, Texas sued Meta for similar allegations regarding Instagram. Legal experts note that if successful, the case could set a precedent for how streaming services treat children’s data, forcing algorithmic transparency and possibly leading to hefty fines.
The petition seeks an injunction to halt the alleged data collection and demands that Netflix inform parents of past practices. It also requests documents detailing the company’s data handling policies for minors. The case highlights growing tensions between state regulators and Silicon Valley over digital rights, with Texas emerging as a particularly aggressive enforcer of privacy rules.
Analysts warn that the outcome could reshape the streaming industry’s approach to personalisation. If Netflix is found to have violated the law, it would face significant financial penalties and forced changes to its systems. The company’s share price fell by 2.1% in after-hours trading following the announcement.
Both parties are expected to appear before a state court in Austin within the next month. The lawsuit is likely to reignite debate about the balance between protecting children online and allowing companies to improve user experience through data analysis. For now, Texas has moved the issue from the court of public opinion into the legal register, demanding that Netflix provide a clear account of its actions.
