Netflix’s Facebook App Could Be Jail Bait

In the U.S., that is, thanks to a 1980s privacy law

   

Netflix (NASDAQ:NFLX) has a Facebook app — which shows a person’s favorite movies — in 46 countries except the U.S. The reason is the Video Privacy Protection Act (VPPA), which was passed in the late 1980s. And yes, Netflix has been lobbying hard to modify things.

The law does seem out of step with the 21st century. It makes it illegal for “a video tape service provider” from providing personally identifiable information. That is, unless it gets written consent!

Of course, Facebook has many top third-party apps that share media with friends. A top example is Spotify, which is a music streaming service. But the VPPA does not apply to music.

Just last year, Netflix paid a $9 million settlement for customers who alleged that the company did not delete their personal information.  So, the VPPA is certainly a big-time pain.


Article printed from InvestorPlace Media, http://investorplace.com/2012/03/netflixs-facebook-app-could-be-jail-bait/.

©2014 InvestorPlace Media, LLC

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