The US Supreme Court is considering whether a 1980s video privacy law still reaches digital data-sharing practices that help power targeted advertising, a ruling that could reshape how Paramount Global and other online platforms monetize user behavior.
Supreme Court reviews video privacy law for targeted ads
The case centers on the Video Privacy Protection Act, written after the public backlash over then-Judge Robert Bork’s rented VHS tapes, and whether that statute covers a free Paramount sports newsletter subscriber whose viewing history was allegedly shared with Facebook for ad targeting. If the court broadens the law’s reach, it could expose streaming, media and internet companies to more class actions and raise the cost of collecting and monetizing viewing data.
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That matters economically because targeted advertising remains one of the most lucrative models in digital media, and a ruling against Paramount could force companies to seek consent more often or scale back data-driven ad products. The dispute also tests whether consumer privacy law written for a physical-video era can be applied to online content consumption, email newsletters and cross-platform tracking.
At argument, lawyers for Paramount said the plaintiff was not a “consumer” under the law because he did not buy video content, while the plaintiff’s counsel argued Paramount “built its model” around sharing personal identifiers without consent. Several conservative justices sounded skeptical of stretching the statute into internet ad-tech territory, with Justice Brett Kavanaugh calling that a “reorientation” of the law.
Investors are watching because a broad reading could add legal risk for Paramount, which already faces pressure to defend margins in a tougher media ad market, and could also create a wider compliance overhang for peers including Disney, Netflix and other streaming and publishing platforms that rely on audience data. Paramount shares are not part of the case, but the legal question goes to the economics of digital advertising across media.
The court is expected to rule by the end of its term in June, and the decision could set the boundary for privacy litigation in the streaming and ad-tech sectors for years.
| Entity | Gains | Losses |
|---|---|---|
| Consumers | ▲More control over viewing data | ▼Less frictionless personalization |
| Paramount Global | ▲Narrow ruling, lower litigation risk | ▼Broad ruling, higher liability |
| Digital ad platforms | ▲Clearer rules if court limits statute | ▼Consent burdens if court expands it |
| Streaming peers | ▲Stable data-driven ad models | ▼Compliance costs, class-action risk |
