Antitrust Law Daily Wrap Up, TOP STORY—President Obama Signs Video Privacy Protection Act Amendment, (Jan 10, 2013)

By Tobias J. Gillett, J.D., LLM.

President Barack Obama today signed into law a bill amending the Video Privacy Protection Act (VPPA) of 1988 to allow video service providers to share the video rental histories of their customers, with their consent.

The VPPA, codified at 18 U.S.C. § 2710, had previously restricted the ability of video service providers to disclose the rental history of their customers. A video service provider could only disclose a customer’s history to the consumer, a law enforcement agency, or a court, unless the provider had the “informed, written consent of the consumer given at the time the disclosure is sought” or “if the disclosure is incident to the ordinary course of business of the video tape service provider.” The VPPA also provided for a private cause of action against violators of the Act.

Following the new amendment, providers can now obtain the “informed, written consent” of their customers to release of their video rental histories, either by requesting permission with each release, or on an on-going basis for a period of up to two years. The new amendment also explicitly permits the providers to acquire consent “through an electronic means using the Internet.” The request for permission must be presented “in a form distinct and separate from any form setting forth other legal or financial obligations of the consumer,” and providers must allow consumers a “clear and conspicuous” opportunity to withdraw their consent, whether granted on a case-by-case or ongoing basis.

Congress intended the amendment to respond to online video service providers’ desire to provide new social media applications, while maintaining consumers’ privacy. The amendment was sometimes dubbed the “Netflix Amendment” due to Netflix’s lobbying on its behalf. Netflix has indicated its intent to provide a service that would integrate consumers’ Netflix accounts with their Facebook accounts.

MainStory: TopStory Privacy