The Netherlands Data Protection Authority (DPA) has imposed a hefty fine of €4.75 million (₹42.35 crores) on Netflix for not providing adequate information about the use of users’ data between 2018 and 2020. This action has been taken for violating the European Union’s General Data Protection Regulation (GDPR).
Netflix’s privacy policy did not clearly explain how it used and stored its customers’ data.
When customers asked for information about the use of their data, they did not receive an adequate response. According to GDPR, companies must clearly explain how they manage personal data and answer customer questions transparently.
Netflix’s answer
Netflix objected to the fine, saying: They have fully cooperated with the DPA during the investigation. They have already made major improvements to their privacy policy to increase transparency on data use. These improvements were implemented well before the fine. A Netflix spokesperson said, “Over the past five years, we have taken many steps to make privacy information more clear. We will appeal this decision.”
DPA objections
Aled Wolfson, chairman of the DPA, said: “A company with a turnover in the billions and millions of customers worldwide should be clear to its customers about how it handles their data. In particular, when customers ask for information, it is imperative to provide them with full information.”
The DPA found the following flaws in Netflix’s privacy policy:
- The purpose of data collection was unclear.
- Details on sharing data with third parties were unclear.
- It was not disclosed how long the data would be retained.
- There was no mention of security measures for data transfers outside Europe.
The Growing Importance of Data Privacy
European regulators are becoming increasingly strict about GDPR rules. This fine is a sign that companies will have to be vigilant about their customers’ privacy and adopt clear and transparent policies.
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