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Ken Paxton, the Attorney General of Texas, has initiated legal action against Netflix, alleging that the streaming service has unlawfully gathered and sold user data without obtaining proper consent. The lawsuit, lodged in a Collin County court near Dallas, claims that Netflix has breached the Texas Deceptive Trade Practices Act through misleading data collection and advertising methods.

1. Accusations of Unauthorized Data Collection

The lawsuit asserts that Netflix misled consumers for years by claiming it did not collect or share extensive user data. Texas contends that the platform has been tracking viewing habits, preferences, devices, household networks, application usage, and other behavioral data from both adult and child accounts. The complaint emphasizes: “When you watch Netflix, Netflix watches you.”

2. Claims of Data Sales to Advertising Firms

Texas alleges that Netflix has shared user information with commercial data brokers and advertising technology firms, where this data was merged with information from other sources to create comprehensive consumer profiles. The lawsuit claims that Netflix generates “billions of dollars annually” from the purported sale and monetization of user data.

3. Focus on Addictive Features and Autoplay

Paxton’s office has also accused Netflix of deliberately creating addictive features to prolong user engagement. The complaint highlights autoplay, which automatically plays the next episode or show after one concludes. Texas is requesting that Netflix disable autoplay by default on profiles for children.

4. Netflix's Response to the Allegations

A spokesperson for Netflix has dismissed the lawsuit, stating that the company intends to contest the claims in court. They remarked, “Respectfully to the great state of Texas and Attorney General Paxton, this lawsuit lacks merit and is based on inaccurate and distorted information.” Netflix further asserted that it “takes our members’ privacy seriously and complies with privacy and data protection laws everywhere we operate.”

5. Texas's Demands from the Lawsuit

Paxton is pursuing civil penalties of up to $10,000 for each violation and is seeking a court order to halt Netflix's unlawful data collection and disclosure practices. The lawsuit also aims to compel the company to delete data that was allegedly collected illegally and to prevent targeted advertising without user consent. Paxton stated: “Netflix has built a surveillance program designed to illegally collect and profit from Texans’ personal data without their consent.”