Texas Attorney General Ken Paxton has filed a lawsuit against Netflix, accusing the company of breaking promises about ads and data privacy.

The complaint claims that Netflix’s advertising move is akin to a “bait-and-switch,” following years of marketing itself as ad-free. The streaming giant introduced an ad-supported plan in 2022, despite co-founder Reed Hastings’ assurances it would stay ad-free. Paxton suggests Netflix has now become a data mine for global advertisers.

Netflix faces accusations of collecting user data such as location, device type, search terms and ratings to feed brokers like Experian and Acxiom. The lawsuit also highlights the platform’s autoplay feature, enabled by default across profiles, potentially misleading subscribers about child safety.

In a statement, Netflix disputes the claims, stating they are based on inaccurate information and that they comply with privacy laws globally. They say they will address these allegations in court.

The move comes as Netflix’s ad-supported Basic tier has seen significant growth, with over 70 million subscribers by January 2025. The streaming giant reported earnings of $1.5 billion from ads that year.