Texas is suing Netflix, claiming the company secretly tracks kids and pushes content parents would not approve of, which is bad news for Netflix and other streamers.

• Texas AG Ken Paxton says Netflix collects data on children, sells it to ad tech companies, and uses it to target kids with inappropriate content.
• The lawsuit goes after autoplay and "dark patterns" that nudge kids toward shows pushing LGBTQ and transgender themes without telling parents.
• Texas wants $10,000 per violation and an order forcing Netflix to stop collecting and sharing data without consent.
• The legal angle is deceptive trade practices: marketing the service as kid-friendly while hiding what kids are actually watching and what data is being taken.
• Paxton has used the same approach to win settlements from Google, Facebook, GM, and Chinese firms over data practices.

Outlook: Netflix denies the claims, but past cases suggest a settlement is likely, though stopping the content itself will be much harder than stopping the data collection.