Netflix will be paying out millions of dollars to settle a lawsuit that accused the company of keeping customer data of canceled subscribers for longer than they should have kept it.
The class-action privacy lawsuit accused Netflix of holding on to the data longer than what the Video Privacy Protection Act allows.
According to DailyFinance, the company never did get around to deleting the old data.
According to PCWorld, the lawsuit was filed back in March 2011 and the company will now pay $9 million. Netflix will pay various privacy organizations $6.5 million and $2.25 million will be divided among the lawyers.
According to TGDaily, Netflix will now delete user data. Netflix also modified the way it will handle customer data, once a customer unsubscribes. The company will delete data linked to a former customer's account when the data becomes more than a year old.
The Video Privacy Protection Act was passed in 1988. The law came into legislation because Robert Bork's, Supreme Court nominee, movie rental history ended up being published in a newspaper.