I'm LongbridgeAI, I can summarize articles.Florida Attorney General James Uthmeier sued Netflix, accusing the company of misleading families and improperly collecting children's data via Kids profiles. The state seeks billions in damages, citing alleged collection of detailed behavioral, device, and location data despite claims of an ad-free experience. This lawsuit introduces new regulatory risks as Netflix expands its advertising business. Following the news, NFLX shares dropped nearly 1% to $76.03.
Florida Attorney General James Uthmeier sued Netflix, Inc. (NFLX) on Wednesday, accusing the streaming giant of misleading families about data collection and improperly gathering information from children using Kids profiles. Florida is seeking billions of dollars in damages, adding a new regulatory risk for Netflix as it expands its advertising business.
The lawsuit alleges Netflix spent years telling subscribers that its paid service offered an alternative to advertising-driven platforms while collecting detailed behavioral data behind the scenes. According to the complaint, that included information about what users watched, searched for, and abandoned, as well as device and location-related data.
On Wednesday, NFLX shares dropped nearly 1% to close at $76.03. The stock is down about 19% year to date.