Texas Attorney General Ken Paxton has initiated a lawsuit against Netflix, alleging the streaming service has breached its promise to remain ad-free and safe for children. The lawsuit claims that Netflix's subscriber base was built on the premise that paying for the service would eliminate targeted advertising and data collection. However, with the introduction of an ad-supported tier in 2022, Netflix reportedly began using demographic data and IP address information for advertising purposes. Paxton contends that Netflix failed to adequately disclose how it collects and utilizes user data, particularly regarding children’s profiles, which are marketed as ad-free. The complaint highlights that Netflix shares user data with third-party data brokers and ad-tech platforms, allowing for extensive tracking and targeted advertising. In response, Netflix has stated that the lawsuit lacks merit and emphasizes its commitment to user privacy and compliance with data protection laws. The lawsuit is filed under the Texas Deceptive Trade Practices Act, aiming to compel Netflix to disclose its data practices and disable autoplay features on children's profiles.