In the wake of a federal ruling that online video viewing is protected by U.S. privacy law, Hulu could face millions of dollars in damages for transmitting consumer information to third parties.
The suit alleges that the video-streaming service forwarded viewing information of its users to Scorecard Research, Facebook, DoubleClick, Google Analytics and QuantCast.
“In a proposed class-action against Hulu, U.S. Magistrate Laurel Beeler ruled the Video Privacy Protection Act of 1988 applies to Hulu,” reports Wired. “The popular video-streaming service… argued that the 1988 act, passed to protect video store rental records, did not apply to streaming services.”
“The question is whether the mechanism of delivery here — streaming versus bricks-and-mortar delivery — ends this case at the pleading stage,” wrote Beeler. “Hulu’s remaining argument is only that it is not a ‘video tape service provider’ because the VPPA does not expressly cover digital distribution (a term that did not exist when Congress enacted the statute). Given Congress’ concern with protecting consumers’ privacy in an evolving technological world, the court rejects the argument.”
Congress adopted the VPPA in 1988 after Supreme Court nominee Robert Bork’s video rentals were published in a newspaper. The act requires consumer consent for disclosure of such information, something that may not suit today’s digital approach to media.
“Netflix is lobbying Congress to alter the law, seeking to allow its customers to automatically share their viewing history on Facebook or other social-networking sites,” explains Wired. “Music streaming services allow this feature, but the Video Privacy Protection Act forbids it for video.”
“The Hulu privacy case is now one step closer to trial, and the question of who can share your video playlist is about to break wide open,” suggests ReadWriteWeb in a related post. “The VPPA, the argument goes, puts video streaming businesses at a serious disadvantage on the social Web, especially when you compare them to, say, audio streamers like Pandora and Spotify.”
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