Paramount Class Action Lawsuit: Streaming Service Violates User Privacy

Case Overview: A class action lawsuit has been filed against Paramount, alleging that the streaming service violated the Video Privacy Protection Act by sharing user data with Facebook and TikTok without consent.

Consumers Affected: Users of Paramount's streaming service.

Court: U.S. District Court for the Southern District of New York

Streaming giant Paramount is facing a class action lawsuit accusing the company of violating the Video Privacy Protection Act by sharing users' private viewing information with third parties, including Facebook and TikTok, without consent. 

The lawsuit claims that Paramount’s tracking tools on its website and apps transmit viewers' personal information and video history to these platforms for marketing, infringing on user privacy rights and privacy laws designed to safeguard sensitive data.

Paramount Shares User Data Without Consent, Lawsuit Claims

California resident Victor Cho, a long-time user of Paramount's streaming platform, filed the class action lawsuit against the company after he discovered that every video he watched was being tracked and shared with social media giants without his consent. 

According to the lawsuit, each time Cho watched a video on Paramount’s site, the data, including his viewing history and identifiable information like his Facebook ID, was shared with Facebook and TikTok. Cho argues that he never agreed to or was informed of these data-sharing practices, which have allowed third-party advertisers to receive his personal viewing information.

Paramount intentionally embedded tracking tools, such as Facebook's Business Tools, to monitor user activity and enhance targeted advertising, according to Cho, and that data allegedly included specific video titles he had viewed on the platform, making it possible for third parties to trace back and identify him based on the information shared.

VPPA Protects Consumer Privacy, Lawsuit Says

The VPPA was enacted in 1988 to protect peoples’ video rental records and was inspired by concerns over the misuse of personal viewing history. The law prevents video providers from disclosing information about users' viewing habits without consent, saying such actions are violations of consumer privacy. While originally aimed at video rental records, the VPPA has recently been applied to digital streaming services and online platforms that use similar tracking practices.

In Cho’s lawsuit, Paramount is accused of bypassing the VPPA by sharing video data through tracking pixels, such as the Facebook Pixel and TikTok API. The lawsuit argues that Paramount controlled these data-sharing practices, knowing users would likely be unaware of the extensive data collection happening in the background.

Paramount Uses Facebook and TikTok Tracking Tools

Cho’s complaint claims that Paramount knowingly implemented tracking pixels from Facebook and TikTok, benefiting from their advertising and data-collection tools without user consent. The tracking tools collect precise information about the videos watched and transmit it to the social platforms alongside unique identifiers, like a user’s Facebook or TikTok ID. 

By linking video history with identifiable information, Facebook and TikTok can associate viewing habits with specific users, which aids in targeted advertising but raises significant privacy concerns.

Facebook and TikTok provide these tracking tools free of charge to platforms like Paramount in exchange for access to user data. Cho argues that Paramount chose the tools to gain marketing insights without bearing the advertising costs, knowing the data-sharing would benefit its bottom line. Yet, these practices arguably violated the VPPA, which prohibits sharing personally identifiable information tied to viewing habits.

VPPA Lawsuits on the Rise

Paramount’s case is part of a broader trend of VPPA-related lawsuits against companies that use digital tracking to gather and share user data without explicit permission. Streaming companies Zumba and MasterClass also face VPPA lawsuits for allegedly sharing viewing data with platforms like Facebook and Pinterest. 

Other companies, like Office Depot and Henry Ford Health, are also under scrutiny for embedding tracking pixels that capture and share data without user consent. 

Courts have recently expanded the VPPA’s application, previously limited to physical video rentals, to cover digital streaming and online tracking—a change that has led to an increase in lawsuits against companies that fail to adapt their data policies. 

In the Paramount data sharing class action lawsuit, Cho wants to represent consumers from across the country in his lawsuit alleging violations of the VPPA. He is seeking damages, injunctive relief, interest, fees, and costs.

Case Details

• Lawsuit: Cho v. Paramount Global
• Case Number: 1:24-cv-08312
• Court: U.S. District Court for the Southern District of New York

Plaintiffs' Attorneys

• Adrian Gucovschi, Benjamin Rozenshteyn, and Nathaniel Sari (Gucovschi Rozenshteyn, PLLC)

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