Netflix fined Rs 42.3 crore for not maintaining transparency about how user data is being used
The Dutch watchdog has accused Netflix of a lack of transparency when it comes to how the company is handling customer data. According to officials, the company presented vague or inadequate information.
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The Dutch Data Protection Authority (DPA) fined Netflix €4.75 million (Rs 42.35 crore) for failing to adequately inform its customers about how their personal data was used between 2018 and 2020. have put. This fine has been imposed following an investigation that began in 2019. , revealing that the streaming giant does not meet the requirements of the EU’s General Data Protection Regulation (GDPR).
DPA’s investigation found that Netflix’s privacy policy lacks clarity, particularly in explaining how the company handles customer data. According to officials, the streaming service has not provided sufficient information in its privacy statement regarding the use and collection of personal data. Additionally, when customers inquired about the specifics of the data collected by Netflix, they were not given sufficient details. This lack of transparency is a violation of the GDPR, which mandates that businesses must be clear about how personal information is handled and respond appropriately when customers request data information.
Netflix has objected to the fine
The Dutch regulator emphasized that these shortcomings in Netflix’s data protection practices occurred between 2018 and 2020. This fine is the result of Netflix’s failure to meet its obligations under EU privacy laws during that period.
In response to the fine, Netflix said it was fully cooperating with the DPA throughout the investigation and had made significant improvements to its privacy policies. The company acknowledged that it has updated its privacy statement to provide more transparency about how customer data is collected and used. Additionally, Netflix emphasized that these changes were made proactively long before the fine was issued. A Netflix spokesperson informed Reuters, “Since the investigation began five years ago, we have worked closely with the Dutch Data Protection Authority and continually evolved our privacy information to provide greater clarity for our members Is. We have objected to this decision.”
DPA against Netflix
In a statement to AFP, another news agency, DPA president Elide Wolfsen said: “A company with a turnover of billions and millions of customers around the world needs to explain to its customers exactly how it handles their personal data . This should be absolutely clear. Especially if the customer asks about it. And that was not in order.
The data protection authority also noted that Netflix presented unclear or insufficient information in various aspects. The regulator pointed out that Netflix was not clear about the security measures it takes to collect personal data, share data with third parties, the period of data retention, and data transfers outside Europe.
While Netflix has improved its transparency and compliance with GDPR rules, the fine underscores the growing scrutiny on companies’ handling of personal data, especially as data privacy remains a major issue in the digital age.
The fine marks a significant step forward by European regulators, who have become increasingly vigilant in enforcing GDPR rules against companies operating within the EU. This fine serves as a reminder that businesses must remain diligent in protecting personal data and providing customers with clear and comprehensive privacy policies.
