Netflix’s Ad-Tier Boom Faces a Billion-Dollar Threat Over Alleged Kids’ Data Tracking

Published 09/12/2026, 3:10 AM EDT

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Netflix is currently riding a wave of immense success as it continues to expand into sports and live events. It has become one of the world’s biggest streaming giants, with a library of fascinating content, from cult classics and anime to original productions. The platform currently has more than 300 million paid subscribers and has massive success with its ad-tier.

However, at the same time, Netflix has also been facing legal hurdles. The streaming giant is reportedly being sued for billions of dollars by Florida, with the state making major accusations against it.

Netflix could face a legal battle against Florida State

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Netflix is reportedly being sued by the state of Florida, which has accused the streaming giant of sharing children’s and household data for advertising without proper consent. The streaming giant has previously claimed and assured users and investors that it does not collect such information. However, Florida officials allege that after Netflix introduced its ad-supported plan, the company began collecting detailed data about children and families.

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This comes as the streaming giant expects its advertising revenue to roughly double in 2026, reaching around $3 billion. And this could be a serious issue for the streaming giant, as this is not the first time Netflix has come under fire over similar concerns. Previously, Texas also sued Netflix over similar allegations.

While Florida’s Attorney General says the state is seeking billions of dollars in damages, the final amount has not been confirmed. Moreover, Netflix has seemingly denied the claims, adding that it follows privacy and data-protection laws in all the countries where it operates. How the streaming platform deals with the issue remains to be seen.

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Apart from this lawsuit, the streaming giant is currently dealing with yet another legal battle over a shocking reason.

Netflix faces lawsuit over Fortitude copy disappearance

Netflix is facing another issue over how it handles sensitive and crucial information. An unencrypted copy of Nicolas Cage's Fortitude reportedly disappeared from Netflix’s Los Angeles office last month. And the filmmakers behind the project are not pleased about it.

Nicolas Cage during the Joe photocall at the 70th Venice International Film Festival. August 30, 2013 Foto:xDaziramx xFuturexImage

Writer-producer Simon Afram and his company, Op-Fortitude, have now sought $105 million in damages. The streaming platform rejected the claims that it bears the risk of losing such important files without proper industry-standard safeguards, as per a Netflix spokesperson who spoke to The Hollywood Reporter.

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"Netflix disputes any claim that it bears the risk of loss for a film delivered without the proper industry-standard safeguards," the spokesperson said.

However, the spokesperson added that the company has taken extra measures to support the filmmaker and his team. How the two parties handle the situation remains to be seen. So, while Netflix is certainly enjoying a strong run, with its business thriving, there have been a few hiccups along the way.

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What do you think about the recent allegations against Netflix? Let us know in the comments.

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Pritha Debroy

1203 articles

Pritha Debroy is an Entertainment writer at NetflixJunkie who can seamlessly switch between breaking down an NBA play and obsessing over the latest K-drama twist. She has written over 3,400 NBA and NFL articles, but her true joy lies in diving into Netflix’s trendiest shows—unpacking themes, stories, and yes, the occasional celebrity chaos. When she is not writing, you’ll find her devouring thrillers (anything by Freida McFadden is an instant yes), revisiting comfort classics like 10 Things I Hate About You and 27 Dresses, or hunting for her next binge-worthy series.

Edited By: Itti Mahajan

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