Texas lawsuit accuses Netflix of illegal data collection

The top prosecutor in Texas filed a lawsuit against Netflix on Monday, accusing the streaming giant of improperly collecting users' data and designing its platform to be addictive.

"When you watch Netflix, Netflix watches you," reads the opening section of the 59-page lawsuit filed in state court at a Dallas-area courthouse by Republican Attorney General Ken Paxton.

Paxton describes the streamer as a giant data repository where it tracks and logs users' viewing habits, preferences and "other sensitive behavioral data," according to a press release that describes Netflix as "spying" on Texas kids and consumers.

Netflix provides these inputs to advertisers so they can better target the company's subscribers, the suit alleges.

The lawsuit also accuses Netflix of employing techniques that would make young viewers become addicted to the platform.

These include an "autoplay" function that activates on the default setting, including for children, meaning once one show ends, another episode automatically begins.

"Netflix is not the ad-free and kid-friendly platform it claims to be," said Paxton, who is currently engaged in a tight primary contest for US Senate against incumbent John Cornyn.

"Instead, it has misled consumers while exploiting their private data to make billions."

The suit asks for injunctions prohibiting Netflix from collecting or disclosing data on consumers during the litigation.

The complaint also seeks civil penalties of up to $10,000 for each violation of the Deceptive Trade Practices Act, a Texas state law.