As part of the settlement, Netflix agreed to change its data retention practices so viewing histories of customers who haven’t subscribed to the service for at least a year will no longer be identifiable. Netflix notified customers of the policy shift in an email Monday.
The lawsuit alleges that the video streaming and DVD-by-mail service retained customers’ movie and TV show viewing data longer than permitted under the U.S. Video Privacy Protection Act and disclosed information on viewing histories to unnamed third parties.
In addition to changing its retention policies, the company also agreed to pay $9 million but the distribution will be made as cy pres to privacy advocacy groups. No money will go to Netflix consumers.