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Netflix Hit with Class Action Suit

The video rental business is a litigious place these days, it seems. Closely following the news that Family Video is facing a class action lawsuit, Netflix has been slapped with one of its own, which alleges that the company is violating customer privacy.

The Netflix suit was filed by Virginian Peter Comstock, who claims that Netflix “keeps comprehensive digital records of every streaming video and video rental ordered by each of its subscribers and that their retention of both payment and video viewing habits of millions of individuals constitutes a violation of both state and federal laws.”

The plaintiff is asking for $2,500 per violation of the federal Video Privacy Protection Act, $3,000 per violation of the Consumer Records Act, and additional punitive damages.

The suit states that Netflix retains its customers’ viewing and payment records after they cancel their service. The streaming and by-mail provider uses this data in its recommendation algorithm, a fact which is “hardly surprising . . . [but] subscribers do not realize that Netflix maintains this video-viewing information, along with confidential subscriber payment information . . . in its databases long after subscribers cancel their Netflix subscription.”

Have Netflix’s policies and practices regarding its customers’ data crossed the line here, Insiders? As we move further into the digital age, it’s a good bet that such allegations are going to become more prevalent as data regarding consumer preferences becomes ever more valuable.
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(via The Hollywood Reporter)

25 Responses to “Netflix Hit with Class Action Suit”

  1. Visitor [Join Now]
    Vernon Dent [visitor]

    Have Netflix’s policies and practices regarding its customers’ data crossed the line here, Insiders?

    Another nuisance lawsuit. Expect this one to be thrown out of court.

  2. Visitor [Join Now]
    tinybrat [visitor]

    I hate Netflix, but come on, this is just insane. We need to have some way to stop these crazy lawsuits before they reach the courtroom. People can just sue for anything, and costs companies millions to fight the nonsense.

  3. Member [Join Now]
    steve-t

    another dumb ass lawsuit

  4. Member [Join Now]
    Joe LittleBear [joe-littlebear]

    Liked “Unstoppable ” very much…….this movie proved that a movie could be made WITHOUT the old crutches….namely that NOTHING WAS BORN…..AND…THE HEROES DIDN’T HAVE TO HAVE LONG HAIR…… My Father worked the railroad for 37 years, so I am very much familiar with the actions taken and the mechanical aspects of the situation… well done…

  5. Member [Join Now]
    Barnbaby [barnbaby]

    I’d have to say the lawsuit is without merit….

  6. Visitor [Join Now]
    MarlaCan [visitor]

    I don’t see what that dudes problem is. I like being able to access my records at Netflix to see what my son may have watched without my permission.

  7. Member [Join Now]
    tomcole37853

    This is crazy! Every business in America keeps this information for their own records and to better serve US consumers. We need to take a stand against class action law suits and put a stop to them. This crook is ripping us off. His suit will force netflix to spend more money which in turn will force the company to raise rates to compensate for lost profits. Profit is the reason that every corporation is in business (including nonprofits)

  8. Visitor [Join Now]
    DSM [visitor]

    MarlaCan –

    Excellent example of the benefits of this service. Only today would an algorithm designed to enhance convenience and parental oversight be subject to a lawsuit. Who cares if they keep your viewing history? So does every library on the planet.

  9. Visitor [Join Now]
    Ron Larson [visitor]

    I thought it was a problem if Netflix (or any company) allowed outsiders to view this information. I know there is a law on the books that allows librarians to refuse to tell people (such as bible thumpers) what books you have checked out.

    Does Redbox track what you rent? I bet at some level they do. They have to. They need to know what movies are being rented so they can best predict what films to stock in what machines. So is they guy also suing Redbox?

  10. Visitor [Join Now]
    AlChirico [visitor]

    Irrespective of the other comments, the issue is whether Netflix violated existing law. Any company engaging in the collection of “information” should retain legal counsel to insure that they are in compliance with the myriad of legal statues that can trip up a business. I would guess that this individual has done his homework and has found a legimate way to make money off of Netflix. My guess is that once Netflix’s legal counsel reviews this suit, they will offer an out of court settlement and amend their data collection practices to avoid this type of suit from being filed again. Were I Netflixs, I would immediately initiate a top to bottom review by a qualified legal advisor of everything that they are doing with customer data.

  11. Visitor [Join Now]
    Gigantor [visitor]

    This is dumb. Who cares that much? All they’re going to do is add a disclaimer saying, “Ummm, is it ok if we use your data to help select and suggest more movies for you?” – its just like all the EULA agreements Microsoft throws in your face. Who reads all that stuff? No one! We click yes to agree and move on with our lives. So stupid.

  12. Visitor [Join Now]
    Jeffrey Zorn [visitor]

    In my opinion they have a right to retain this info for sometime. Just as a employer has to retain your employment records for a certian amount of time for legal reasons. Netflix may do this for the purpose of keeping acurate tax records. Just think if you get audited on taxe on your buisness you have to have receipts for just about eveything

  13. Member [Join Now]
    azz

    @AlChirico – No the real issue here is how this ‘Tard Brain even got his case on the docket, it should have been DQ’d as soon as it was filed. A company is required to maintain financial records of all its transactions for a minimum of 3 years to satisfy possible IRS audit requirements. The Video Privacy Protection Act (VPPA) does not address the collection nor storage of consumer information, it simply makes it illegal to “disclose” such information to non-affiliated third parties. VPPA also states that a plaintiff is only entitled to injunctive relief of up to $2500 actual damages. Since the article does not mention that Netflix ever actually released any of the plaintiff’s information, the lawsuit is without merit prima facie. Hopefully Netflix recovers all costs of defending this lawsuit from the plaintiff when he loses, so we as customers don’t have to absorb the bill!

    • Visitor [Join Now]
      AlChirico [visitor]

      @Azz -The very fact that it wasn’t “D’Qd” as you say must mean that the court found sufficient merit it the filing. Ultimately, a smart company like Netflix will avoid costly court expenses and settle. This is what is commonly known as a nuisence law suit, not worth the expense of fighting it out in court. BTW, as I read the article, it wasn’t just the VPA that was at issue. However, I am obviously not as knowledgeable about such things as you are.

  14. Visitor [Join Now]
    Jack [visitor]

    next thing you know…one cannot take a poo and have to sue the someone .

    what’s wrong the people in this country? Love to sue each other…

  15. Member [Join Now]
    starman15317

    Family Video gets sued so they sue one of their enemys? Give me a break.

  16. Member [Join Now]
    Tim The Toolman [timscarlet]

    Netflix subs can be started up again after cancelling, which worked out good for me, when i came back, everything was there when i came back, all my history, that is one of the reasons why they keep records, for customers coming back.

  17. Visitor [Join Now]
    Bethany [visitor]

    Class action… okay, where do I sign up then? I’m poor.

  18. Visitor [Join Now]
    John [visitor]

    Yes , they use my viewing habits to make recommendations. I dont feel violated.

  19. Member [Join Now]
    Bikemiles [bikemiles]

    Keeping the history is common. I’ve had online rental that has reminded me that I already rented it. One did this when I discontinued and came back. The privacy angle comes in if someone tries to subpoena your movie rental l history. You might recall the Clarence Thomas confirmation hearings. Someone hacked into video rental account. It turned out to be new releases and classics so that helped Thomas.

  20. Visitor [Join Now]
    Bodewest [visitor]

    There will always be parasites in our society. Besides, how would we be able to justify hangin’ on to the black robe “gang”?

  21. Member [Join Now]
    Storm1026 [storm1026]

    OK, so what about all those little grocery store cards???? That everyone thinks is just for DISCOUNTS!!! HA! It really tracks our information on how we shop, what we shop for, etc. I can only assume that this is for the store only.But I doubt it.i’m sure that info is being sent to all of the suppliers also. OR, every single time that we go onto a website and even though you aren’t aware of it, your actually linked into another site. It’s so they can get $$$$$. Everything revolves around MONEY. Greed has taken over.

    And then there’s all the camera’s that are ALL OVER THE PLACE!!!! At traffic lights, outside of store parking lots, in malls, all over NYC! I can understand that this can help catch criminals but it does make me feel a bit violated sometimes.

    Personally, I give up with trying to put shame to these ridiculous lawsuits. It takes too much time & effort. The people that are filing these suits….well read above…it’s all about making an easy buck. this is what our world has turned into and we just have to deal I guess.

    ONLY MY OPINION…don’t want any lawsuits! LOL :)