Netflix Rejects Texas Lawsuit Alleging Illegal Data Spying on Children

Netflix has formally responded to a lawsuit filed by Texas Attorney General Ken Paxton, which accuses the streaming giant of illegally spying on children and selling their personal data. In a statement provided to USA TODAY, Netflix dismissed the allegations as meritless and based on distorted information. The company emphasized its commitment to member privacy and compliance with data-protection laws globally. The lawsuit, filed in a Collin County district court on May 11, 2026, alleges that Netflix tracks sensitive behavioral data, including viewing habits and device usage, across both adult and kids' profiles. It further claims the company uses this information to build detailed consumer profiles for sale to third parties and designs addictive platform features like autoplay. Netflix stated it intends to fight the case in court, highlighting its industry-leading parental controls and transparent privacy practices. This legal confrontation underscores growing regulatory scrutiny over tech companies' data handling practices, particularly concerning minors. Netflix's strong rebuttal signals a willingness to challenge state-level regulatory actions that it views as unfounded, aiming to protect its business model and reputation regarding user data security.