Netflix's $1 million contest was such a huge success that the company right away declared plans for another one. The contest that aimed at enhancing movie suggestions became a smash hit.

But it seems that users scurrying through the video rental site's database have ignored one big problem.

According to University of Texas Researchers, the anonymous data released for the competition that comprised movie suggestions and options made by massive number of consumers, could be utilized to recognize them.

This lead to a lawsuit from KamberLaw L. L. C and unwanted attention of the Federal Trade Commission. So, Netflix has decided to postpone its plan to launch a sequel to its first contest.

Meanwhile, Netflix's Chief Product Officer, Neil Hunt, said that the company had "reached an understanding" with the F. T. C. and resolved the lawsuit.

"The resolution of both matters involves certain parameters on how we use Netflix data in any future research programs", he said.

The contest was launched by Netflix in 2006, where $1 million was offered to the first group that could enhance the future accuracy of the company's movie suggestion software by at least 10%. Employees of AT&T Labs, had won the contest.