Today the Supreme Court will hear arguments in a major case pitting privacy advocates against media companies. By any measure, Salazar v. Paramount Global is a blockbuster case in the making. At issue is the use of viewing habits by companies offering free subscriptions and material to the public. These companies make money by then using that history for tailored marketing programs. Michael Salazar is arguing that a Blockbuster-era law should prevent such sharing of his viewing history, a ruling that would have a massive impact on media and entertainment companies.
Salazar involves a law passed 40 years ago after a controversy during the confirmation hearings of Robert Bork, who was nominated by President Ronald Reagan. The press and pundits unleashed an unrelenting campaign against the conservative, including the Washington City Paper releasing his list of 146 movies rented from a video store. Congress moved to stop the abuse and passed the Video Privacy Protection Act to bar such disclosures.
Now, Michael Salazar is arguing that his free digital subscription for 247Sports.com, which is owned by Paramount Global, should also prevent the company from sharing his viewing habits with marketers. The case could have sweeping impacts on media and entertainment companies, which make much of their revenue through tailored marketing pitches based on such information.
The Video Privacy Protection Act (“VPPA”) bars a “video tape service provider” from “knowingly disclos[ing], to any person, personally identifiable information concerning any consumer of such provider.” 18 U.S.C. § 2710(b)(1). A “consumer” defined as a “subscriber of goods or services from a video tape service provider.” Id. § 2710(a)(1). The act further defines “personally identifiable information” as including information that “identifies a person as having requested or obtained specific video materials or services from a video tape service provider.” Id. § 2710(a)(3).
On one level, the spirit of the Act is to protect the privacy of citizens in watch they choose to watch in their private lives. That is why privacy groups have rallied around the case. According to polls, over seven in ten Americans have concerns that they have little to no control over what companies do with their data.
Conversely, the companies argue that this is a free service and that marketing is how these companies make such material available without charge to the public.
Paramount is arguing for a narrow construction of the statute. It notes that “consumer” is a “renter, purchaser, or subscriber of goods or services” from a “video tape service provider.” 18 U.S.C. 2710(a)(1). It argues that Salazar is not a “consumer” because he did not “rent[], purchase[], or subscribe[]” to the delivery of any “video cassette tapes or similar audio visual materials.” 18 U.S.C. 2710(a)(1) and (4).
Salazar insists that he did subscribe when he signed up for a free, written email newsletter. However, the company argues that the newsletter is not a “video cassette tape[] or similar audio visual material[],” ibid., so he is not a “consumer” under the statute.
It is portraying the case as a distortion of a now dated law: “The VPPA is a Blockbuster-era statute barring the non-consensual disclosure by video rental stores of the rental history of individual patrons. Salazar seeks to transmogrify it into a prohibition against targeted advertising on the Internet.”
Like many sites, 247Sports allows access outside of a paywall by making revenue through advertising. While many consumers do not like their viewing history shared, they also do not like the increasing costs of having to pay for access to games and videos. It is a tradeoff that the lower courts felt was permissible in rejecting Salazar’s claims.
This is a tough case of statutory interpretation in seeking to apply an older statute to new media conditions and practices.
Courts have found various flaws in Salazar’s claims ranging from claiming to be a “consumer” within the meaning of the VPPA to whether Paramount is a “video tape service provider” or whether the information is “personally identifiable.”
If subscribing to a free newsletter is the same as subscribing to actual audiovisual content, the case could deliver a massive blow to media revenue streams.
Ultimately, Congress could step in to tweak the law if the Court rules for Salazar. When the Court accepts a case, there is a higher likelihood that it will reverse the underlying opinion. However, it only takes four justices to accept a case and this Court tends to narrowly construe such laws. The countervailing issue here is that the Act was designed with the stated purpose of protecting privacy.
I teach “legisprudence” theories in my torts and Supreme Court classes in how courts interpret statutes with “gaps” or “ambiguities.”
Some would argue that a court should gravitate toward the narrow textual meaning given the sweeping impact of a broader interpretation. Figures such as Judge Frank Easterbrook argued for upholding the “deal” of legislation in strictly interpreting such laws by not gap-filling. Instead, the court can leave it to Congress to resolve ambiguities as the branch accountable to voters.
Another approach, advocated by Professor Jonathan Macey, would apply the “public-regarding purpose” of the law — fill in the gap or ambiguity by reference to the stated “public-regarding purpose” of the law. In this case, the public-regarding purpose is privacy.
The Court often gets sticker shock in adopting broader interpretations that could impact whole industries in such a transformative way. It much prefers to defer to Congress on such trade-offs. Yet, rather than letting the Sixth Circuit opinion in favor of Paramount stand, four justices decided that they wanted to deal with this question. It could prove to be a close case.


There is no such thing as a free lunch… we pay, one way or another…
Are we to believe that if we PAY for a subscription which provides videos, and movies (some included in the sub price, others for an extra cost) they DON’T collect and share that data?
Right.
Almost all comments below completely ignore the fact the VPPA is a narrowly tailored law with significant specificity. That is the issue at hand, not privacy, and not the practice of Internet user data collection.
After listening to the oral arguments, I respectfully disagree. The intent of Congress in 1988 was to protect individual media consumption behavior. Before that year, the technology simply didn’t exist to record a person’s consumption behavior, let alone without their permission. So, the law was written to ban the first example of doing so. Based on the questions posed by the majority of justices, the best way to solve this controversy would be for subscription services to ask the individual for consent to share or sell personal information.
It was thrilling to hear the Supreme Court articulating serious legal questions individual privacy rights. The common sense of requiring explicit consent to sell someone’s shopping behavior was magnificent to hear.
Did the VPPA intend to be broad enough to cover this ? Maybe, though I doubt it.
Was the VPPA a mistake – absolutely.
Jn the free market you have as much privacy as you want.
Free markets do not promise you utopia, they promise to meet your needs as cost effectively as possible ranked as YOU rant those needs.
Privacy is a right. But we trade off rights all the time in the free market for things we want more.
You have the absolute right to not work a day in your life – though your life will likely be short.
We all want the free services that the web provides – and we have traded some of our privacy for that.
Further – so long as we do not involve government – you benefit from that trade.
MOSTLY the web recomends to me things i actually want. That is a good thing.
Buying the things I want is a part of life and doing so efficiently is a positive good.
I do not care what Amazon knows about me – but I do care if they share it with the govenrment.
That said – you do not like the trade off of free services in return for businesses learning your preferences,
Do not use free services, do not use your real name, or do not use the internet.
Pay cash at the local walmart – and no one is tracking your purchases.
The market ALREADY provides you with privacy – if you want it.
What it does not do is provide you with anything ACTUALLY for free.
Regardless, while there is debate here about TOS and contracts and laws – and to some extent that is important.
The real bottom line – and most of us KNOW this – and we do not need contracts and TOS to KNOW it.
If you are getting somethingf for free or at a discount.
You are still paying for it somehow.
That is with the information about you that you provide.
But even better for YOU – that information is being used to BETTER meet YOUR needs.
Governments gather data on people to screw them up.
Private actors gather data on people to better meet the needs of the people they are gathering data on.
What if I pay for a YouTube subscription. Is my listening history then protected? Somehow I really doubt it.
What about public school- it’s free- does that price tag justify the 100+ data points collected and distributed to outside entities?
What if I pay for Netflix and Amazon- is my viewing history protected?
This case looks like a no-brainer to me, the old Blockbuster law clearly doesn’t apply. As much as I dislike the personally intrusive economics underlying much of the today’s Internet, that pales in comparison to how much I abhor the courts legislating from the bench.
Personally, I would like a federal law that widely criminalizes the release of any and all private information without explicit consent. The law should have requirements for an explicit standalone consent checkbox, separate from the huge privacy novellas that nobody reads.
I wonder if the people who complain about the loss of privacy have any idea the information their new cars are collecting on them, including every measurable detail of their driving habits. People complain about flock cameras, but the information collected by your new car is a hundred times more intrusive.