Florida Attorney General James Uthmeier has filed a lawsuit against Netflix, accusing the streaming service of misleading consumers by promising a private, ad-free experience while secretly collecting extensive behavioral data, including from children's profiles, to develop its advertising business.
The lawsuit, filed Wednesday, alleges that Netflix assured subscribers they could avoid the data-driven advertising models used by other tech companies by paying a monthly fee. However, Florida claims Netflix quietly gathered significant user data before launching its ad-supported tier in November 2022.
"Netflix told Florida families they could pay a monthly fee to escape Big Tech surveillance. That was false," Uthmeier stated in a news release. "Netflix collected detailed data on children and families, designed its product to keep kids watching, and then commercialized that information to launch the advertising business it promised never to build."
The complaint cites statements from Netflix executives, including former CEO Reed Hastings, who in 2020 stated the company did not collect user data and was a "safe respite" from companies that exploit users through advertising. Florida alleges these assurances were misleading, as Netflix built a substantial data operation that tracks user interactions such as viewing habits, searches, pauses, rewinds, skips, and abandonments, along with device and location information.
Florida's lawsuit places particular emphasis on Netflix's "Kids Profiles," which are marketed as dedicated spaces for children. The state contends that Netflix encouraged parents to create these profiles, describing them as "Great for kids" and a child's "own space," while continuing to collect and analyze children's viewing behavior through the same systems used for adult accounts.
Additionally, the lawsuit accuses Netflix of employing "dark patterns," such as autoplay, which is enabled by default on Kids Profiles. Florida alleges this feature is designed to extend viewing sessions, encourage binge-watching, and generate additional behavioral data, especially from children.
Florida alleges that Netflix's expansion into the advertising business, which it had previously rejected, involved allowing advertisers and ad technology companies to use subscriber data for audience targeting and campaign measurement after the ad-supported tier launched.
The state is suing Netflix for alleged violations of the Florida Deceptive and Unfair Trade Practices Act and the Florida Digital Bill of Rights. The lawsuit claims Netflix unlawfully shared sensitive personal data collected from children without the consent required by state law.
Florida is seeking a court order to permanently block these alleged practices, compel Netflix to delete data collected from Floridians, stop using historical subscriber data for its advertising business, purge behavioral data from Kids Profiles, prohibit the use of alleged dark-pattern designs, and impose civil penalties.
Netflix had not immediately responded to a request for comment.