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In early 2011, Netflix was hit with a lawsuit alleging that it had violated its customers’ privacy by keeping records of its subscribers’ viewing habits years after they cancelled their service. The company has filed an agreement to pay $9 million to settle the suit.

The plaintiffs in the case accused Netflix of violating the Video Privacy Protection Act, which prohibits video rental services from disclosing their customers’ viewing activity. The plaintiffs claimed 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.”

Netflix has made no admission of wrongdoing as part of the settlement. The company included the $9 million payout as part of its 2011 expenses in its annual report.

Was this a just victory for consumers, or an example of frivolity in our legal system?

(via CNET)

6 Responses to “Netflix Settles Privacy Lawsuit for $9 Million”

  1. Visitor [Join Now]
    ElizabethMayJ [visitor]

    that is ridiculous how sad.

  2. Visitor [Join Now]
    Wesley [visitor]

    I’m going with option 2.

    I cancelled my dvd subscription because I just wasn’t using it enough. Recenly, I reupped and they still had all of my data, including my queue and preferences. It was nice. I wonder, next time, if I’ll be so lucky.

    There’s a big difference between “video rental services from disclosing their customers’ viewing activity” and “comprehensive digital records of every streaming video and video rental.” Mostly, it’s that one pesky word, DISCLOSING.

    Enjoy your tiny tiny share of those millions, sue-happy twerps.

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

    Mea Culpa–thought this one would be thrown out of court as frivolous, but was wrong. Maybe an appeal will reverse the decision.

  4. Visitor [Join Now]
    tinybrat [visitor]

    I’m excited to get my 50 cent check from this settlement.

  5. Visitor [Join Now]
    I Won [visitor]

    With my check I will buy a skittle.

  6. Visitor [Join Now]
    Jeff [visitor]

    Yum skittles