A rumor involving Penny and Myron (the school nerd) is spread. Penny's reputation is ruined, and even her friends believe the rumor. Her enemy, and sometimes kind of a friend LaCienega started the rumor, and another rumor spreads about LaCienega trying to steal Myron away from Penny.
Penny is being very generous today. She is making breakfast and complimenting her parents in order to have a sleep-over she wants on the same day as Trudy's veterinarian awards banquet. Because of that event happening, Trudy says no. Oscar thinks it's fine, but only because he doesn't want to go to the awards banquet after what happened between him and the animal waiter in the previous awards banquet. But Trudy drags him along. Penny suggests that Suga Mama could chaperone. Trudy thinks it's okay as long as she agrees. Penny knows she will because she and Suga Mama ""speak the same language."" Penny pays Suga Mama, twenty dollars to be the chaperone. Her friends arrive. But before Trudy and Oscar leave, they tell them ""the rules:"" ""No loud music, no boys, no running up the phone bill, no boys, and most importantly...no boys."" Of course, what's a sleep-over without loud music and boys? Dijonay invites the boys over and starts the party music. Meanwhile, at the awards banquet, Oscar torments the pigeons by saying he eats buck. The pigeons get back at him by chasing after him. After Oscar and Trudy return home from the banquet awards with a award, they were shocked that the party was thrown and grounds Penny for a month for disobeying them, much to her dismay. 2 days later at school, a rumor gets spread about Penny and Myron kissing in the closet. Penny thinks Dijonay spread the rumor and gets upset with her, but as the school's gossip reporter, Dijonay claimed that she reported the rumor. However, Penny learns that LaCienega spread the rumor and attempted to have a fight with her in the school hallway that drew every student's attention to watch, but a rumor quickly gets spread that LaCienega is in a relationship with Myron, and every student in the hallway talks about it to one another. Penny stops everyone and sings "Rumors" to convince everyone with a moral to not spread rumors.
Trudy: Ok, baby. You know the rules. No loud music, Oscar: No boys, Trudy: No running up my phone bill, Oscar: No boys, Trudy: And most important rule of all... Penny, Lacienega, Zoey, Dijonay: No boys. Suga Mama: Why don't you get a move on? I've got everything under control. Oscar: And the 'No Boys" rule doubles for you Mama! Suga Mama: (talking on the phone) Call you back, my son's trippin'. Dijonay: Yesterday, someone spread a nasty rumor about Penny Proud and Myron Lewinski. Today, Myron is my in-studio guest and he's here to set things straight, Welcome to the show Myron! Myron: Thank you Dijonay, with your fine self. Dijonay: Oh Myron, if you're so smooth, if you weren't with Penny, I- Penny: Dijonay! Dijonay: So, er Myron, what DID happen between you and Penny last Saturday night? Myron: As usual, the ladies are all over me and- (Penny slaps Myron in the back of the head) Myron: Uh, I mean nothing happened. Penny is a nice girl and I have nothing but the out most love- (Penny slaps him again) Myron: I mean respect for her.
Myron: Yo, Penny! There was a feeling to what you had to say. But I got to be honest. I like rumors. Changed my life. I went from "geek", to "sheek". Gas! (Myron breathes on inhaler and walks away with girls)
- Kyla Pratt as Penny Proud
- Tommy Davidson as Oscar Proud
- Paula Jai Parker as Trudy Proud
- Jo Marie Payton as Suga Mama
- Tara Strong as BeBe Proud, CeCe Proud and Puff
- Karen Malina White as Dijonay Jones
- Orlando Brown as Sticky Webb
- Soleil Moon Frye as Zoey Howzer
- Michele Lisette Jennings as Additional Voices
- Phil LaMarr as Michael Collins
- Alisa Reyes as LaCienega Boulevardez
- Kevin Michael Richardson as Omar Phillips
- Marcus T. Paulk as Myron Lewinski
- In production code order, this is actually the first episode.
- It is revealed that Myron is claustrophobic.
- This episode marks the first appearance of Myron.
- Dijonay is immediately shown to be a horrible friend. She breaks the rules and caused the very situation that lead to rumors about Penny.
- This episode marks the first time in the series that Penny gets grounded.
- When Penny went into the closet for 7 minutes with Myron, LaCienega put locks on the door. But when Penny's parents came home, there were no locks on the closet door.