Netflix Calls Texas Spying Lawsuit 'Meritless,' Vows to Fight in Court

Netflix on May 12 rejected as 'meritless' a Texas AG lawsuit accusing it of spying on users including children via addictive autoplay and deceptive data collection, pledging a court challenge. Filed May 11, 2026, in Collin County by Ken Paxton under the Texas Deceptive Trade Practices Act, the suit claims Netflix harvested data from paid accounts and kids post-2022 ad-tier launch, monetized it for billions with partners like Google and Amazon, seeking up to $10,000 per violation, data purges, and autoplay disabled on children's profiles. Shares fell 2.4% to $85.40 on May 11 but dipped just 0.11% in latest reports amid legal and reputational risks.