The state of Texas officially sues Netflix, alleging false advertising and improper misuse of user privacy.
Texas Attorney General Ken Paxton has officially filed a lawsuit against Netflix, accusing the company of breaking promises to no longer operate without advertisements and failing to be child-friendly and safe. The case was filed on Monday, with the complaint stating that Netflix has allowed the data of Texas users to be accessed and used by large advertising technology companies, which are the very companies that Netflix had criticized in the past for invading user privacy in similar ways.
In the complaint, Paxton stated that Netflix has long portrayed itself as a platform free from the monitoring of large tech giants, attracting a large number of subscribers. However, in 2022, Netflix completely reversed its position after introducing a membership package with advertisements - something that co-founder Reed Hastings had explicitly promised never to do.
The lawsuit alleges that after expanding into the digital advertising business, Netflix started profiting from a variety of data collected in large quantities from children and family users. Paxton accused Netflix of establishing a user behavior monitoring system, collecting a large amount of user behavior information including geographical location, device usage, search terms, content rating preferences, and more. The streaming platform also shared this user information with data intermediaries such as Experian and Acxiom.
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