A federal judge has allowed seven claims to proceed in a lawsuit alleging that Paramount improperly collected and shared data from children using its Pluto TV service. The litigation centers on allegations that the platform shared user data with third parties, including Alphabet and Microsoft, without parental consent.
The court's refusal to dismiss these claims signals increased legal scrutiny for free ad-supported streaming television (FAST) platforms regarding data harvesting. As Paramount navigates its Skydance merger and a settlement with state attorneys general to maintain Pluto TV, these privacy allegations could complicate its operational requirements for free services. The case highlights a growing tension between the targeted advertising models essential to FAST economics and strict regulatory protections for minor users. Industry observers should monitor whether this litigation forces a broader shift in how streaming platforms manage anonymous versus authenticated user data for children's programming.
Paramount's Pluto TV platform has faced mounting regulatory pressure beyond this single lawsuit. In June 2025, Paramount agreed to a $1.5 million settlement with 32 state attorneys general over allegations that Pluto TV collected and shared personal data from children without parental consent, a resolution that required the company to implement enhanced age-verification and data-deletion protocols for users identified as minors. That multistate action, which preceded the current federal litigation, established a baseline expectation that FAST platforms must treat children's data with the same protections mandated under the Children's Online Privacy Protection Act (COPPA), regardless of whether the service requires account registration.
The legal exposure for Paramount arrives as the company navigates its completed merger with Skydance Media. Paramount Global and Skydance Media completed their $8.4 billion merger on August 7, 2025, with the renamed Paramount Skydance Corp beginning to trade on Nasdaq under the ticker PSKY. Under the new structure, David Ellison announced that Paramount+ and Pluto TV will operate on a unified technology stack beginning in 2026, meaning any court-imposed restrictions on how Pluto TV handles minor user data could require architectural changes across the combined streaming platform's ad-serving pipeline.
The specific legal claims in the Diaz v. Paramount Skydance case invoke both the Video Privacy Protection Act and COPPA. Five parents filed the class-action complaint in the Central District of California alleging that Pluto TV's website carries Google and Microsoft tracking pixels that transmit personally identifiable video-viewing information about children who watch the site's kids section. The plaintiffs argue that Paramount Skydance violated the VPPA, a 1988 statute prohibiting video providers from disclosing personally identifiable information about viewers without consent, alongside state privacy laws. Google and Microsoft are not named as defendants, but the complaint characterizes their tracking pixels as part of a mass surveillance network that compiles advertising profiles from children's viewing data.
A federal judge ruled that a lawsuit alleging Paramount improperly tracked children's viewing habits on Pluto TV can proceed. The case claims the platform shared data with third parties like Alphabet and Microsoft without parental consent. This ruling signals increased legal scrutiny for FAST platforms regarding data privacy and minor protections.
The lawsuit alleges that Pluto TV shared personally identifiable video-viewing information about children with third parties, including Alphabet and Microsoft, without obtaining the necessary parental consent.
A federal judge allowed seven of eight claims to proceed, including allegations of negligence and common law invasion of privacy, as well as violations of the Video Privacy Protection Act and COPPA.
Yes, Paramount recently removed the 'Kid Mode' feature from its Pluto TV applications.
In June 2025, Paramount reached a $1.5 million settlement with 32 state attorneys general regarding similar allegations of collecting and sharing children's personal data without parental consent.
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