Following a class action lawsuit against Netflix, the video rental and streaming video service will be changing its privacy policy related to former members, according to a report from
PCR.
The lawsuit had accused the company of keeping the rental histories for former members and sharing consumer data with other third parties in a breach of privacy.
To rectify that issue, the firm says it has changed its policies so rental histories will no longer be tied to any particular person after they have been unsubscribed from the service for 12 months or more. However, it will still retain the anonymous rental patterns to improve its predictive algorithms. Customers were sent emails about the change this week.
Also, while the company said it didn't admit to any actual wrongdoing, the report said, it will also donate millions of dollars to nonprofit privacy groups as part of the settlement.
For more news and information regarding privacy and other legal issues, please consult the blog of
Eduard Goodman, the chief privacy officer for
Identity Theft 911.
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