California Governor Signs Bill Limiting Wiretapping Litigation

On Sept. 30, California Gov. Gavin Newsom signed Senate Bill 690, which eliminates the ability for individuals to sue under certain provisions of the California Invasion of Privacy Act (CIPA). Although the law goes into effect Jan. 1, 2027, it applies retroactively to any pending claim brought on or after Jan. 1, 2025.

In recent months, plaintiff attorneys have sent demand letters and filed lawsuits regarding website tracking technologies, such as cookies or pixels. Plaintiffs have alleged that these third-party tracking technologies capture and transmit information about website visitors before they click or otherwise interact with the website, in violation of federal and state wiretapping laws, most commonly under CIPA.

The law will reduce, but not eliminate, litigation under CIPA. Lawsuits can still be filed under CIPA’s interception and eavesdropping provisions. Plaintiffs can also still file lawsuits under federal wiretapping laws. Dealers should understand what tracking technology is used on their websites and ensure that their privacy policies accurately disclose the information being collected and shared with third parties.

Additional Info:

• Compliance Alert: Wiretapping Litigation Highlights Importance of Website Tracking Compliance (login required)
• Compliance Alert: Wiretapping Plaintiff Classified as “Vexatious Litigant” by United States District Court in California (login required)
• Webinar: Update on Website Pixel Litigation: What Your Dealership Needs to Know (login required)
• Best Practices for Tracking Consumer Website Activity