In a chilling accusation that strikes at the heart of digital privacy, Paramount Skydance Corp. and its streaming arm Pluto Inc. are being accused of illegally sharing children’s personal data with Google and Microsoft. The claims, filed Tuesday in California federal court, allege that the companies quietly transmitted sensitive information about minors’ viewing habits to internet giants without parental consent.

According to the complaint, five parents filed the Skydance Privacy Class Action, asserting that Paramount and Pluto harvested personally identifiable information (PII) — including details about specific shows watched by children — and shared it with Alphabet Inc. and Microsoft Corp. for ad-targeting purposes.

“A Breach of Trust and Innocence”

“When Google and Microsoft receive information about an individual's media preferences and educational attainment, they compile it into an ever-growing advertising profile,” the complaint reads. “They use that data to stream tailored ads based on an individual's interests, goals and anxieties.”

The lawsuit paints a picture of covert surveillance masquerading as entertainment. It alleges that Paramount’s streaming platform embedded Google and Microsoft tracking tools into its child-directed content, siphoning data from unsuspecting families.

The data allegedly enabled advertisers to identify children’s digital footprints — from the cartoons they watched to the learning shows they clicked — all to refine ad precision and maximize profit.

“One would hope that websites catering to children would be especially careful to avoid sharing information about those children with advertisers,” the suit laments. “Unfortunately, that is sometimes not the case.”

Families Across Four States Take a Stand

The plaintiffs — Raquel Diaz, Lisa Medina, Oscar Rodriguez, Stacy Rader, and Katrina Montgomery — filed on behalf of their minor children, identified only by initials. They hail from California, Illinois, Indiana, and New Jersey, and claim the alleged misconduct occurred between 2024 and 2025, when their kids watched programs hosted on the “Kids” section of Pluto TV using personal electronic devices.

The complaint accuses the streaming giants of violating multiple federal and state privacy laws, including the Video Privacy Protection Act (VPPA), the Electronic Communications Privacy Act (ECPA), and the California Invasion of Privacy Act (CIPA).

The proposed nationwide class seeks to represent more than 100,000 individuals whose personal data may have been exposed. The filing estimates that the amount in controversy exceeds $5 million, seeking $2,500 in statutory damages per VPPA violation and $10,000 per ECPA breach.

“Children Deserve Privacy, Not Profiling,” Says Counsel

Attorney Sonjay Singh of Siri & Glimstad LLP, representing the parents, told Law360 that the case transcends politics and speaks to a universal principle: the right to privacy.

Quoting the late Sen. Patrick Leahy (D-VT), Singh noted that privacy “is not a conservative or a liberal issue... it goes to the deepest yearnings of all Americans that we are free.”

Singh added, “Kids should be free to learn and grow online without their every move being tracked, transmitted, and monetized for profit. This case seeks to vindicate that federally protected right on behalf of our clients and all other children similarly impacted.”

A High-Stakes Legal Showdown

The Skydance Privacy Class Action could become a landmark case in the ongoing debate over children’s digital rights and corporate accountability. With billions at stake and reputations on the line, Paramount and Pluto now face scrutiny for what critics describe as “commercial surveillance” of minors.

Representatives for Paramount did not respond to requests for comment Wednesday, and counsel for Pluto TV has not yet been identified.

The parents are represented by Daniel Srourian of Srourian Law Firm PC, and Tyler J. Bean and Sonjay Singh of Siri & Glimstad LLP.

As the case unfolds, one question looms large: Will Hollywood’s streaming giants finally be held to account for turning children’s screen time into a data goldmine?