Netflix Secretly Collects and Monetizes Kids’ Viewing Info, Class Action Lawsuit Alleges

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A proposed class action lawsuit alleges that Netflix has falsely represented that its streaming service is a kid-friendly, ad-free alternative to certain data-harvesting Big Tech platforms despite secretly using surveillance technology to effectively spy on children and extract valuable viewing information for advertising purposes.

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The 35-page Netflix lawsuit contends that although the streaming giant has positioned itself as a kid-safe, ad-free, privacy-conscious alternative to Instagram, TikTok, Facebook, Google and other Big Tech-run platforms, the company has nevertheless surreptitiously designed and implemented surveillance and advertising infrastructure to collect and monetize “mountains of data” about children’s viewing habits.

Central to the class action lawsuit is litigation brought by the attorneys general of Texas and Florida alleging that Netflix misled consumers with promises that their data would not be harvested and used for commercial purposes, even as the streamer developed “sophisticated” systems to track and monetize users’ data.

“Netflix built this surveillance machinery to study how users and their children behave—what they click, how long they linger, what they avoid, when they pause, what draws them in, what they replay or skip, where they are, what devices they use, what other devices are in their home, what other apps they interact with, and much more,” the complaint says. “Each action is a data point revealing something about the user.”

The filing says that although Netflix represents that it is “Great for kids” and reassures that “Kids Profiles” are separate, secure environments designed to safeguard children’s viewing information, the company has secretly acquired years of consumer viewing information and built  behavioral-surveillance infrastructure for the advertising business it launched in 2022.

Per the suit, parents reasonably understand Netflix’s claims to mean that children are protected from the kind of “aggressive” data tracking and behavioral advertising found on Big Tech platforms.

The suit claims the streaming service has in fact commercialized users’ data “in service of the very advertising business Netflix promised it would never build.”

The class action lawsuit also alleges that Netflix wields deceptive “dark patterns” so as to maximize prolonged viewing sessions to make its streaming service as addictive as possible and ensure that children and their parents stay “tethered” to the screen while their valuable data is extracted and monetized.

“Netflix’s endgame is simple and lucrative: get children and families glued to the screen, harvest their data while they are stuck there, and then monetize the data for a handsome profit,” the lawsuit alleges.

The filing shares that the Florida and Texas AG lawsuits take issue with Netflix’s autoplay feature in particular, alleging that autoplay, which is turned on by default for both standard and Kids Profiles, strips away “natural breaking points” that would typically cue viewers to step away from the screen.

Per the complaint, between 2018 and 2026, Netflix’s revenue increased from $15 billion to a projected $50 billion or more amid the company’s pivot into advertising.

“Netflix’s explosive financial growth reflects a deliberate choice to cash in on the trust it spent years cultivating under false pretenses,” the complaint asserts.

The case alleges that Netflix has monetized viewers’ behavioral information through partnerships with data brokers such as Experian and Acxiom, as well as Google, The Trade Desk, Yahoo, Amazon and LiveRamp, among others.

Essentially, Netflix spent years distinguishing itself from surveillance-driven tech companies only to later offer up consumers’ data to the same advertising system it once publicly “denounced,” the case claims. The suit adds that Netflix never obtained the requisite consent from subscribers to collect and use their behavioral data and does not give parents a “clear or meaningful” disclosure about its data-collection practices.

The Netflix class action lawsuit looks to cover all Ohio residents who subscribed to Netflix’s streaming product as a Household or Extra Member at any time since September 26, 2024 and are also parents or legal guardians of one or more minor children (who are thereby included in the class by adult representation).

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