Cybersecurity Policy Report, Texas AG Sues Netflix, Settles With LG in Behavior-Tracking Cases, (May 13, 2026)
Organizations Mentioned:LG Electronics USA, Inc.
By Lynn Stanton
Texas Attorney General Ken Paxton (R.) has sued Netflix for tracking sensitive behavior by users, including children, and disclosing the collected information to commercial data brokers and advertising technology companies without users’ knowledge or consent.
“For years, Netflix represented to consumers that it did not collect or share extensive user data. In reality, Netflix is a logging company that records and monetizes billions of behavioral events—and occasionally streams movies,” the AG’s office said. “The company earns billions of dollars every year from secretly selling consumer data.”
The AG is alleging violations of the Texas Deceptive Trade Practices Act in a lawsuit filed in the District Court of Collin County, which argues Netflix features like autoplay—automatically starting another show when one ends—are “engineered to manipulate users to take the actions Netflix wants them to take.”
The state seeks temporary and permanent injunctions against collection and disclosure of users’ data without their consent and civil penalties of up to $65,000 per violation.
AG Paxton also announced a settlement with LG Electronics U.S.A., Inc., over alleged privacy violations involving the company’s smart TVs. The company has agreed to stop using automated content recognition (ACR) technology to collect viewing data and to prohibit transfers of viewing data to the Chinese Communist Party.
AG Paxton said, “No electronics company should be collecting consumers’ data and exposing Texans to potential surveillance by the Chinese government. I am pleased to see that after my office took action, smart TV companies are doing what is necessary to protect Texans. I will continue to work to aggressively hold other smart TV companies accountable for unlawfully using ACR technology to put consumers at risk.”
The settlement follows a similar settlement with Samsung. “Cases against Sony and Hisense and TCL Technology, the latter two of which are based in China, remain ongoing,” the AG’s office noted.
News: StateLegislation LitigationEnforcement DataPrivacy