Privacy issues nix Netflix movie-picking contest

By Associated Press
Friday, March 12, 2010 - Added 6 months ago

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LOS GATOS, Calif. - Netflix has canceled a sequel to a $1 million contest to improve its movie recommendations.

The DVD-by-mail service wants to avoid a legal showdown over the privacy rights of its subscribers. The retreat announced Friday was triggered by a lawsuit alleging that Netflix violated a federal law prohibiting video rental firms from publicly sharing their customers’ movie preferences.

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