Texas Attorney General Ken Paxton filed a lawsuit against Netflix Inc. (NASDAQ: NFLX), alleging the streaming company collected user data without consent and disclosed information to third parties.

The lawsuit claims Netflix collected behavioral data from users, including children, tracking viewing habits, preferences, devices, household networks, and application usage. According to the complaint, Netflix represented to consumers that it did not collect or share extensive user data while actually recording user interactions on the platform.

The suit alleges Netflix disclosed user information to commercial data brokers and advertising technology companies, which combined the data with information from other platforms to build consumer profiles. The attorney general's office claims the company generates revenue from selling consumer data.

The complaint also targets Netflix's autoplay function, alleging it creates continuous content streams designed to keep users watching for extended periods. The lawsuit claims this feature applies to children's profiles as well as adult accounts.

"Netflix has built a surveillance program designed to illegally collect and profit from Texans' personal data without their consent," Paxton said in a statement.

The lawsuit was filed under the Texas Deceptive Trade Practices Act. Paxton seeks to halt the alleged data collection and disclosure practices, require Netflix to disable autoplay by default on children's profiles, and secure injunctive relief and civil penalties.

The legal action addresses Netflix's data handling practices across both adult and children's accounts on the platform.