Lucy's on the phone with Marge hearing gossip about Betty. Ricky wants her off the phone. The only reason Lucy hung up is because Betty walked in on Marge. Lucy objects to being called a gossip, claiming that she's passing along "vital information." Ricky says that Lucy can't wait to tell Ethel. Lucy mentions that "her lips are sealed." Ricky baits Lucy in a trap when he tells Ethel that Lucy has a piece of "nice juicy gossip." Lucy comes out of the bedroom with tape over her mouth. Because she promised Ricky that she would keep her lips sealed, Lucy carries on a pantomime telling the story of the gossip. Soon the boys are caught up in the story too trying to guess what Lucy is acting out. After everything is done the women state that men gossip too. But the boys don't totally agree. Ricky starts telling a story about the trombone player in the band. In order to stop this gossiping the girls bet the boys that they can keep from gossiping longer than they can. The losers are going to have to serve the winners breakfast in bed for a month.
The boys meet at the drugstore. Both are concerned that three days have already passed and neither of the girls have been caught gossiping. Ricky suggests that they make up some crazy story, tell it to the girls in their sleep, and wait for them to blab the story to each other. They both work to come up with the gossip which is that Grace Foster is having an affair with the milkman and that her husband doesn't suspect anything.
That night in bed Ricky wakes up Lucy and then pretends that he sleeping. As soon as he mentions Grace Foster Lucy can't help but listen. Then Ricky starts to tell the story in Spanish with Lucy growing frustrated. She's determined to call Ethel, or anyone about the gossip but realizes that it is too early in the morning. When she climbs back into bed she slaps his leg. Ricky wakes up acting very smug about the outcome of the trick.
Fred comes rushing over the next morning mentioning that Ethel is coming up to see Lucy. To catch the girls in the act of gossiping they go to listen in the basement through the furnace pipe. Ethel does come by on the pretense that she needs to borrow some sugar. They try to keep from gossiping and are successful until Lucy does a Freudian slip saying Grace Foster instead of Brown Betty. She checks for Ricky, finds him not there and they discuss the gossip. The boys talk through the furnace pipe mocking them for spreading phony gossip. To get even Lucy sticks the fireplace bellows in the furnace grill and pumps soot into their faces. The girls can't believe they've been tricked. But Lucy realizes a loophole-the boys were awake when they gossiped thus saying they were gossiping first. Yet, the boys fight back saying that since the story was fake they weren't really gossiping.
The boys are ready for their breakfasts in bed. Ethel's mad at Lucy for agreeing with the boys in their logic to how they won the bet. The milkman comes rushing into the bedroom looking for a place to hide. Ethel hides him under the vanity skirt. Mr. Foster comes in waving a gun accusing the milkman of flirting with his wife. Lucy talks him out of shooting the milkman. When Mr. Foster leaves the boys relinquish their breakfasts but Lucy wants something different to eat. They boys leave grumbling that they've lost. Then the milkman comes out from under the vanity. Lucy pays him $5 and $5 for Mr. Foster for their great performances. The girls win the bet and Lucy gets some free milk from the milkman too.