When Penny the Pomeranian overhears Archie the Afghan mention having an accident in the house, she tells everyone she knows. Soon, her whole class has heard the story-including Archie! To make things worse, Penny discovers that the story isn't true, but Archie's feelings are very hurt. Penny needs to put a stop to the rumour and apologize to Archie before things get out of hand. In Penny's Rumour, the puppies of PupPup City learn that stories have power, including the power to affect others.