Netflix Settles Video Privacy Protection Act Violations

February 13, 2012 -

Netflix announced that it will settle a lawsuit that claimed that it illegally retained customers’ rental histories, an act that ran afoul of Video Privacy Protection Act and California consumer laws. The settlement, which was disclosed in a Netflix securities filing with the SEC, puts to bed a 2011 lawsuit that accused the company of VPAA and California consumer law violations. The VPPA restricts video rental companies from disclosing customer information and requires them to destroy rental history data within one year.

Former customers alleged in the lawsuit that Netflix retained their personal information - a fact they learned when they went to re-subscribe to the service later on. This information they retained include streaming queue and disc-based rental history.

The VPPA has caused Netflix a number of setbacks. Earlier in the year the company wanted to allow users to share rental info with friends on Facebook. The law would not allow that. Congress passed the law in 1988 in the era of home video after a newspaper published the video rental history of Supreme Court nominee Robert Bork. Netflix is urging lawmakers to change the law.

The settlement will cost the company an estimated $9 million. The company will pay the money while not admitting to any wrong-doing.

Source: PaidContent


Comments

Re: Netflix Settles Video Privacy Protection Act Violations

And what if I like the fact that Netflix knows what I watch and can recommend other stuff I like?  I guess I'm screwed because some California asshats wanted to score a settlement?

Re: Netflix Settles Video Privacy Protection Act Violations

Ah.. the laws that get passed when someone important gets embarassed and other important people worry it might happen to them.  Gotta keep those stimgas in the closet so you can publicly denounce other people for them.

 
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