California, September 1, 2025
News Summary
California has approved Senate Bill 690, aiming to limit lawsuits against businesses under the California Invasion of Privacy Act (CIPA) related to online tracking. The bill, passed unanimously, provides exemptions for certain commercial uses of cookies and tracking technologies, seeking to reduce legal burdens on small and medium-sized enterprises. As businesses navigate the implications of CIPA, SB 690 is poised to reshape the legislative landscape concerning online privacy compliance and litigation.
California has seen a notable increase in lawsuits against businesses under the California Invasion of Privacy Act (CIPA) due to the usage of online tracking technologies such as cookies, Meta Pixel, Google Analytics, and LinkedIn Insight. In response to this trend, California State Senator Anna Caballero introduced Senate Bill 690 (SB 690), which aims to limit abusive CIPA lawsuits. The bill was passed unanimously by the California Senate with a vote of 35-0 on June 3, 2025, and is currently awaiting consideration in the Assembly.
CIPA, which is a wiretap statute designed to prevent the interception of electronic communications, requires consent for such activities to be lawful. California lawyers have argued that the tracking technologies employed by businesses violate CIPA because they allegedly intercept communications between websites and their visitors, which includes tracking clicks and keystrokes. The impact of this has been particularly severe on small and medium-sized enterprises, which are increasingly being targeted for legal actions rather than the technology providers themselves. This shift has created an environment where businesses must navigate expensive litigation without the assurance of favorable outcomes.
Under CIPA, class-action lawsuits can impose statutory damages of $5,000 for each violation per website visit. Settlements typically range from $50,000 to $200,000. Given the high costs associated with litigation, many businesses find it more practical to settle these claims instead of engaging in a protracted legal battle. Recent legal rulings, including a significant summary judgment in the U.S. District Court for the Northern District of California, have occurred in this contentious arena. The court’s ruling in the case of Torres v. Prudential Financial, Inc. established that a CIPA violation necessitates proof that a party actually read or attempted to read the contents of a user’s communication while in transit, thus narrowing the scope of liability.
The introduction of SB 690 seeks to amend the current legal landscape by providing exemptions for certain commercial uses of cookies and tracking technologies, effectively limiting many CIPA claims tied to online activities. This move aims to offer legal clarity for businesses enduring CIPA litigation pressures and redirect their focus towards compliance with existing privacy regulations rather than substantial financial liability stemming from lawsuits.
The definition of “commercial business purpose” within SB 690 aligns itself with provisions outlined in the California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA). As the bill progresses, one notable amendment includes the decision to remove a retroactive provision, indicating that the changes will only apply prospectively and will not affect ongoing cases.
The overarching objective of SB 690 is to harmonize California’s privacy laws and mitigate the burden placed on businesses from what some consider predatory litigation practices related to privacy law violations. If successful in the Assembly, the bill aims to usher in a period of reduced legal contention for businesses, fostering a more stable environment for online commerce in California.
Conclusion
As Nevada moves forward with Senate Bill 690, the discussions surrounding online privacy and business liability under CIPA continue to unfold. The future of this legislation may significantly shape how businesses interact with users online while safeguarding their right to operate without the constant threat of litigation.
Frequently Asked Questions
- What is the California Invasion of Privacy Act (CIPA)?
- CIPA is a wiretap statute aimed at preventing the interception of electronic communications, requiring consent for such interceptions to be lawful.
- What is the purpose of Senate Bill 690 (SB 690)?
- SB 690 aims to limit abusive lawsuits related to businesses’ use of cookies and tracking technologies by exempting certain commercial uses from CIPA liability.
- What are the penalties for violating CIPA?
- Class-action claims under CIPA can lead to statutory damages of $5,000 for each website visit, with settlements often ranging from $50,000 to $200,000.
- How does SB 690 affect existing lawsuits?
- SB 690 will not affect pending cases as it removes its retroactive provision, applying only to future instances of alleged violations.
- What changes does SB 690 propose regarding tracking technologies?
- The bill proposes to exempt certain commercial uses of cookies and tracking technologies from CIPA liability, fostering a more supportive environment for businesses.
Key Features of SB 690
| Feature | Description |
|---|---|
| Purpose | Limit abusive lawsuits related to online tracking technologies. |
| Protection Against Lawsuits | Exempt certain commercial uses of cookies from liability under CIPA. |
| Applicability | Only applicable prospectively; does not affect pending cases. |
| Statutory Damages | $5,000 per website visit for violations. |
| Settlement Trends | Settlements usually range from $50,000 to $200,000 for businesses. |
Deeper Dive: News & Info About This Topic
- CDF Labor Law: Navigating CIPA
- JD Supra: Federal Judge Denies CIPA Lawsuit
- National Law Review: California SB 690 Passes
- Hunton: California Bill May Curb Abusive Lawsuits
- Crowell: Privacy Plaintiffs Attorneys
- Wikipedia: California Invasion of Privacy Act
- Google Search: California Privacy Law Updates
- Google Scholar: California Invasion of Privacy Act
- Encyclopedia Britannica: California Invasion of Privacy Act
- Google News: CIPA Lawsuits
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
