Company to donate $6.65 million to nonprofit privacy organisations

Netflix changes privacy policy after class-action lawsuit settlement

Netflix will no longer retain rental history for people who have unsubscribed.

The change in policy comes as a result of a class-action lawsuit filed against the company. The lawsuit accuses Netflix of unlawfully keeping and disclosing the rental histories of former customers.

It will now be no longer possible to identify video histories of anyone who hasn’t subscribed to Netflix for 12 months or longer.

Netflix’s change in policy is part of a proposed settlement to the class-action brought by former customers Peter Comstock and Jeff Milans of Virginia, USA.

They accused Netflix of breaking the 1998 US Video Privacy Protection Act, which prevents video rental services sharing data about past and present customers’ viewing habits.

They also accused the company of sharing customers’ data with unnamed "third parties".

Netflix has not admitted to any wrongdoing in agreeing to settle. This settlement will see Netflix donate $6.65 million to nonprofit privacy organisations, and $2.25 million to the law firm that served as class counsel.

Past and present customers were notified of the change by email on Monday.

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