Link: Texas sues Netflix for advertising ‘bait and switch’ and spying

Texas Attorney General Ken Paxton has filed a lawsuit against Netflix, accusing the company of a deceptive advertising strategy concerning its ad-free promise. Paxton alleges Netflix misled consumers by promising a surveillance-free service, then introducing ads and collecting extensive user data after increasing their subscriber base.

The lawsuit claims that Netflix's move to an ad-supported model in 2022 broke its initial promise, enabling it to capitalize on the data harvested from its users. It specifically points out the exploitation of data related to children and families.

According to Paxton, Netflix's advertising tactics have transformed the platform into a tool for “behavior-surveillance,” collecting detailed information on users’ interactions and preferences. This data is allegedly shared with data brokers like Experian and Acxiom, compromising user privacy.

Since the launch of its Basic tier with ads, Netflix's subscriber count in this segment has dramatically increased, doubling its numbers within a year and significantly boosting its advertising revenue.

The lawsuit also criticizes Netflix for failing to protect children adequately, highlighting the platform's default autoplay feature across all profiles, which Paxton claims further violates child safety norms. He asserts that Netflix has not only broken its trust with users but is also in violation of the Texas Deceptive Trade Practices Act.

Paxton is seeking court intervention to halt Netflix's alleged unlawful data practices and to make changes to how the platform manages autoplay features, particularly for children. Netflix has not yet responded to the allegations.

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