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Re:Netflix Prize 2 Cancelled Due to a Lawsuit and FTC Inquiry by nlabs on Friday March 12, 2010 @02:00PM (#1187486)
Maybe its somewhere in Netflix's terms of service that data on users movie preferences will be collected, however this information will be kept anonymous (as best as can be done by netflix).
Re:Netflix Prize 2 Cancelled Due to a Lawsuit and FTC Inquiry by lftl on Friday March 12, 2010 @02:19PM (#1187527)
It is. They mention in their privacy policy that they may disclose anonymized histories, so they might have a decent legal leg to stand on.

I don't think this helps them much in court of public opinion, and it helps even less in not pissing off a segment of their customers. Making it opt-in seems like an easy compromise. The only downside I see is if they get a really low response rate.

Re:Netflix Prize 2 Cancelled Due to a Lawsuit and FTC Inquiry by nlabs on Friday March 12, 2010 @02:41PM (#1187584)
they could incentivize it with reduced monthly rates.