Florida Sues Netflix Over Privacy and Advertising "Bait-and-Switch"

Florida’s attorney general is accusing the streaming giant of a "bait-and-switch" scheme that secretly tracked children's viewing habits to build its advertising business.

For years, parents trusted Netflix as a safe, ad-free space where their children could watch shows without being tracked. A major new lawsuit from the state of Florida challenges that trust, alleging that Netflix systematically harvested children's data to power its lucrative advertising business. This legal battle could force a massive overhaul in how the entire streaming industry handles minor data and transparency regarding ad-supported tiers.

WHAT HAPPENED

On Wednesday, Florida Attorney General James Uthmeier filed a lawsuit against Netflix in state court. The lawsuit alleges Netflix used a "bait-and-switch" scheme, promising families an ad-free service that would not collect or sell data, only to secretly track children and build the advertising business it vowed never to create.

According to the complaint, Netflix’s leadership previously assured the public that the company did not collect user data, framing the platform as a safe respite from surveillance. However, Florida officials claim Netflix spent years accumulating consumer data and building a behavioral-surveillance infrastructure. The state alleges Netflix records billions of behavioral events—including what devices Floridians and their children use, their locations, and what content they watch, pause, rewind, search, skip, and abandon.

The lawsuit specifically targets how Netflix handled "Kids profiles" for children ages 12 and under. While Netflix told parents it does not engage in behavioral advertising on Kids profiles, the lawsuit alleges this was a half-truth. The state claims Netflix still collected and analyzed children's viewing behavior through the same systems used on adults. After launching its ad-supported subscription tier in November 2022, Netflix allegedly opened this data to commercial brokers and advertising platforms, allowing advertisers to target Florida families based on their viewing habits.

• The Plaintiff: Florida Attorney General James Uthmeier, who filed the lawsuit in St. Johns County.
• The Defendant: Netflix, the world's most popular streaming service.
• The Core Allegation: Netflix allegedly misled users about data tracking, specifically harvesting and monetizing viewing habits from "Kids profiles".
• The Laws Cited: The lawsuit accuses Netflix of violating Florida's Deceptive and Unfair Trade Practices Act and its Digital Bill of Rights.
• The Remedy Sought: Florida is seeking a permanent injunction, the deletion of improperly collected data, and changes to platform features designed to keep children hooked.

WHY IT MATTERS

This lawsuit strikes at the core business model of modern streaming services, which increasingly rely on ad-supported tiers to fuel growth. For years, the selling point of premium streaming was the absence of ads and surveillance. If Florida succeeds, it could set a major legal precedent, forcing Netflix and competitors to restructure how they handle minor data and transparency.

The case also highlights a growing push against Big Tech's data-harvesting targeting children. Florida is not the first state to take legal action; Texas Attorney General Ken Paxton filed a similar lawsuit against Netflix earlier this year. As states step in, streaming platforms face a patchwork of strict state-level regulations.

WHAT HAPPENS NEXT

The legal battle will play out in Florida's state court system. Attorney General Uthmeier's office is pursuing a permanent injunction to halt Netflix's alleged data-tracking practices, demanding the deletion of all improperly collected data and changes to user interface features that encourage excessive screen time for children.

Netflix has not yet formally responded to the Florida lawsuit. However, in response to the Texas lawsuit, Netflix previously stated that it takes member privacy seriously and complies with all applicable laws. The streaming giant is expected to mount a vigorous defense, arguing its practices are legally compliant.

WHAT WE STILL DON'T KNOW

1. How will Netflix formally respond to the specific allegations regarding the tracking of "Kids profiles" in Florida?
2. Will other states join Florida and Texas in launching similar privacy lawsuits against Netflix's advertising business?
3. What specific financial penalties or operational changes will the court impose on Netflix if Florida wins the lawsuit?

SOURCE NOTE

This story draws on reporting from The Hollywood Reporter.