Tuesday, March 27, 2012

Why Netflix's Facebook app would be illegal

Several big-name brands have Facebook apps that instantly blast out users' activity -- the latest song they've listened to, or a story they just read. But in the U.S., there's one notable exception: Netflix.
The video streaming service is blocked from creating a Facebook app in America because of a 1980s law meant to protect consumers' privacy -- and lawmakers are tussling over how to update it.
It's called the Video Privacy Protection Act (VPPA), and it highlights the issue of old legislation lagging new technology. Netflix (NFLX) is lobbying Congress to change what it called an "ambiguous" and "confusing" law in aSeptember blog post.
VPPA arose from strange circumstances surrounding the failed Supreme Court nomination of Robert Bork. While Bork's nomination hearings were taking place in 1987, a freelance writer for the Washington City Paper talked a video store clerk into giving him Bork's rental history.

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The writer, Michael Dolan, later wrote that he was proving a point: "Bork said, Americans enjoy only those privacy protections conferred by legislation." Bork's rentals were unremarkable, but the City Paper published the list anyway -- much to the chagrin of lawmakers.

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