In our latest Consumer Alert, Managing Partner Jonathan Gardner and Of Counsel James M. Fee examine the upcoming argument in Salazar v. Paramount Global.

The Supreme Court has taken up a case that could significantly impact how privacy law applies in the digital age.  In Salazar v. Paramount Global, the Court will decide who qualifies as a "consumer" under the Video Privacy Protection Act (VPPA), a statute originally passed in 1988 after a reporter published Supreme Court nominee Robert Bork's video rental history.

Federal appeals courts are divided on a crucial question: Does the VPPA protect only people who subscribe directly to video content, or does it also cover individuals who have any subscription relationship with a company that provides videos-such as signing up for a free email newsletter?  The plaintiff in this case, Michael Salazar, subscribed to a free sports newsletter from a Paramount-owned website.  While browsing the site, his video viewing data was allegedly shared with third parties through tracking pixels.  The Sixth Circuit ruled he wasn't a VPPA "consumer" because he never subscribed to actual video services-just a newsletter.

The outcome will have real consequences for consumers and businesses alike.  A broader interpretation would extend privacy protections to millions of users who engage with websites featuring video content alongside other services.  It would allow the VPPA to adapt to modern digital realities where video is ubiquitous.  A narrower ruling could leave many consumers without recourse when their viewing habits are tracked and shared without consent, potentially requiring Congress to step in with updated privacy legislation.

This case also signals a broader challenge courts face: how to apply consumer protection laws written for VHS rental stores to an era of streaming, cookies, and tracking pixels.  The Court's approach here may set a template for interpreting other aging statutes in the digital context.

Labaton Keller Sucharow will continue to monitor this case and provide updates as the Supreme Court issues its decision.