Netflix has been fined €4.75 million (approximately $4.98 million) by Dutch authorities for failing to adequately inform subscribers about the use of their personal data.
The Dutch Data Protection Authority announced the penalty on Wednesday, citing violations that occurred between 2018 and 2020.
According to the AP, Netflix did not provide clear and sufficient details to customers about how their data was collected, used, and shared. The agency highlighted gaps in Netflix’s transparency, particularly when customers sought clarification.
“Netflix did not explain properly how it handled personal data, especially when customers asked about it,” said Aleid Wolfsen, chairman of the AP. “A company like Netflix, with billions in revenue and millions of customers worldwide, must be clear about how it handles personal data. That was not the case here.”
The AP further criticized Netflix for failing to clarify key points, such as the reasons for collecting personal data, the types of data shared with third parties, the duration of data retention, and the security measures in place for transferring data outside Europe.
In response to the investigation, Netflix has updated its privacy statement and improved the information it provides to subscribers regarding data use. However, the company has appealed the fine, according to Dutch authorities.