Paramount Global is facing a class action lawsuit over allegations that it shared its streaming subscribers' viewing histories with tech giants Meta and TikTok. The suit, filed in California federal court on Friday, accuses the media conglomerate of violating the Video Privacy Protection Act (VPPA), a federal law restricting the disclosure of consumers' video viewing information without consent.
The lawsuit claims Paramount transmitted personally identifiable information about subscribers, including detailed records of videos viewed, to third-party platforms Meta and TikTok. These data-sharing practices were purportedly used to tailor targeted advertising, a common strategy facilitated by tracking tools web developers embed in their platforms. Paramount is accused of engaging in this data exchange “knowingly and intentionally,” breaching users’ trust and violating federal privacy law.
The class action seeks at least $5 million in damages, potentially significantly impacting Paramount's financial liability, as the VPPA provides for statutory damages of up to $2,500 per affected class member.
The Video Privacy Protection Act (VPPA) was enacted in 1988 after an incident involving Supreme Court nominee Robert Bork brought public attention to the importance of protecting consumer video rental histories. The Washington City Paper published Bork’s rental history, sparking outrage and prompting Congress to act to prevent such disclosures without consent. As a result, the VPPA was passed to safeguard the privacy of consumers' video viewing information.
The VPPA makes it unlawful for video service providers to knowingly disclose a consumer's personally identifiable information (PII) concerning their video rentals or viewing history without obtaining informed written consent. Violations of the VPPA can lead to statutory damages of up to $2,500 per affected individual, attorney’s fees, and possible punitive damages. The Act also creates a private right of action, allowing consumers to sue for unauthorized disclosures.
Initially, the VPPA focused on physical video rental stores, but it has since been interpreted to include digital streaming platforms. Courts have been tasked with determining whether activities like sharing viewing data with third-party partners, often for advertising purposes, breach the VPPA. As streaming technology evolved, the scope of the law became a contentious topic. Cases have arisen debating whether digital platforms collecting data, such as watching history or other interactions on a streaming service, fit the "video tape service provider" definition under the VPPA.
The recent lawsuit against Paramount Global centers on claims that the company shared users’ video viewing histories with Meta and TikTok to aid targeted advertising, allegedly without obtaining the necessary user consent as mandated by the VPPA.
Central to many VPPA lawsuits is the definition of a "subscriber" and the law's applicability. In a prior case involving Scripps Network, a federal judge ruled that receiving a free newsletter from HGTV.com did not make an individual a “subscriber” covered by the VPPA. This decision and rulings in cases against companies like AMC and Warner Bros. Discovery highlight ongoing ambiguity regarding which types of consumer relationships fall under the VPPA’s protections.
If found liable, Paramount's case would reinforce the potential risks streaming services face under the VPPA, emphasizing the importance of transparent data practices and user consent. In similar recent legal battles, some lawsuits were dismissed or refiled, indicating a nuanced judicial interpretation of the VPPA’s reach.
