A federal lawsuit accusing Paramount Skydance of improperly collecting and sharing information about children who watched programming on Pluto TV will continue after a judge allowed seven claims against the company to proceed.
The lawsuit, first filed in November, was launched by five parents whose minor children used Pluto TV’s free, ad-supported streaming service, including programming offered through its children’s section.
The parents allege Pluto TV collected personally identifiable information connected to their children, including information about specific videos they watched, then shared data with third parties including Alphabet and Microsoft without parental knowledge or consent.
Paramount sought to dismiss the lawsuit, arguing the parents lacked standing. An earlier version of the case was dismissed on those grounds, prompting the plaintiffs to file an amended complaint in May.
The court declined to dismiss the amended case in its entirety: Of eight causes of action presented by the parents, the judge dismissed a breach of implied contract claim while allowing seven others to proceed, including claims involving common law invasion of privacy, negligence and unjust enrichment.
The parents also allege their children were exposed to adult-oriented advertising while watching Pluto TV and that marketers were able to obtain detailed information about the minors. The complaint claims some of the children subsequently asked their parents to purchase food and toys advertised through the service.
Those allegations have not been proven, and the court’s decision allowing the claims to proceed does not constitute a finding that Paramount violated the law.
Pluto TV is owned by Paramount and operates as a free, ad-supported streaming television service offering linear channels and on-demand programming.
The plaintiffs can further amend the claim dismissed by the court or proceed with litigation involving the seven remaining claims.
Paramount removed Pluto TV’s “Kid Mode” from their apps last month, according to information obtained by The Desk. The mode allowed Pluto TV users to view children’s programming in an environment that segregated more-mature content from the app when activated. It wasn’t clear if the removal was connected to the litigation.
A settlement between Paramount and a number of state attorneys general over the company’s ambitions to acquire Warner Bros Discovery (WBD) requires it to maintain a free streaming service for the foreseeable future. Pluto TV is specifically named in the settlement agreement as an example of a free streaming service that Paramount can continue operating to satisfy that term when it closes on the deal, though the company can also unwind Pluto TV and launch another free streaming service in its place.
