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.