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Settlement Lowers Fourth Quarter Earnings

PRIVACY LAW—U.S.

February 13, 2012

Netflix has disclosed a change in its fourth-quarter earnings after its settlement over violations of the Video Privacy Protection Act (VPPA), The Washington Post reports. The $9 million settlement resulted in a 14-percent decrease in the company's fourth-quarter net income. Netflix did not admit wrongdoing in the settlement, and no other details of the settlement were released. A lawsuit filed by Virginia residents alleged Netflix had been violating the VPPA by retaining subscribers' rental histories for up to two years after they'd cancelled their subscriptions. Meanwhile, Netflix has been lobbying Congress to amend the VPPA to allow for blanket user consent to share subscribers' rental preferences on Facebook. (Registration may be required to access this story.)
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