California, September 1, 2025
News Summary
California’s Senate unanimously passed SB 690 aimed at limiting lawsuits under the California Invasion of Privacy Act (CIPA) targeting small and medium businesses. The bill, introduced by Senator Anna Caballero, seeks to provide relief from abusive CIPA claims linked to online tracking technologies like cookies. This legislation comes in light of increased litigation costs faced by businesses, with potential damages reaching up to $5,000 per website visit. The ruling in Torres v. Prudential Financial also clarified the interpretation of CIPA, impacting how future cases are approached.
California has taken significant steps towards addressing the increase in lawsuits under the California Invasion of Privacy Act (CIPA), particularly those targeting small and medium businesses utilizing online tracking technologies. On June 3, 2025, the California Senate approved Senate Bill 690 (SB 690) with a unanimous vote of 35-0. This bill aims to limit abusive lawsuits related to the use of cookies and tracking technologies, providing much-needed relief for businesses overwhelmed by litigation.
The current climate around CIPA lawsuits has alarmed many business owners. Legal professionals argue that online tracking techniques, including cookies, Meta Pixel, Google Analytics, and LinkedIn Insight, may infringe on individuals’ privacy rights as they facilitate the interception of electronic communications without proper consent. Specifically, CIPA serves as a wiretap statute that mandates consent for the interception of communications—something that online tracking technologies may breach, leading to legal claims.
Lawyers pursuing these cases have shifted their focus predominantly to small and medium-sized businesses, largely avoiding litigation against major technology providers. This strategic choice diminishes the financial risks associated with expensive court cases and circumvents the potential establishment of legal precedents that could make CIPA applicability broader. This trend has resulted in class-action lawsuits against businesses, where companies face statutory damages of up to $5,000 for each visit to their website, compelling settlement offers ranging from $50,000 to $200,000. For many smaller businesses, settling these claims is often seen as a more financially viable option than proceeding to court—creating a situation where litigation becomes a business cost.
A recent ruling in the U.S. District Court for the Northern District of California may alter the landscape of these lawsuits. In the case of Torres v. Prudential Financial, Inc., the court clarified that simply collecting data does not violate CIPA, unless it can be demonstrated that there was an intent to read the users’ communications while in transit. This ruling serves as a crucial guideline for how such cases will be interpreted in the future.
SB 690, introduced by State Senator Anna Caballero on February 24, 2025, aims to redefine the scope of CIPA as it relates to online business activities. The bill seeks to exempt certain commercial usages of tracking technologies from CIPA liability, thereby eliminating many CIPA claims linked to online activities. It aligns the definition of “commercial business purpose” with provisions in the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA).
The intention behind SB 690 is to restore legal certainty for businesses facing CIPA litigation, allowing them to concentrate on meeting compliance requirements of privacy statutes rather than defending themselves against excessive lawsuits. However, the bill eliminates its prior retroactive provision, meaning it will not impact any ongoing cases and will only apply to future actions if it receives Assembly approval.
Ultimately, SB 690 aims to strike a balance between ensuring consumer privacy and reducing the burden that predatory legal practices place on California’s businesses.
FAQ Section
What is the goal of SB 690?
The goal of SB 690 is to limit abusive lawsuits related to the California Invasion of Privacy Act (CIPA), particularly those targeting small and medium-sized businesses using online tracking technologies.
What are the potential damages businesses face under CIPA?
Businesses can face statutory damages of up to $5,000 for each visit to their website, leading to settlement demands that range from $50,000 to $200,000.
How does SB 690 redefine CIPA liability?
SB 690 aims to exempt certain commercial uses of cookies and tracking technologies from CIPA liability, effectively reducing the number of claims businesses may face related to online activities.
What impact did the ruling in Torres v. Prudential Financial, Inc. have?
The ruling clarified that merely collecting data does not constitute a CIPA violation unless there is proof that the party had an intent to read users’ communications while in transit.
Key Features of SB 690 and CIPA
| Feature | Description |
|---|---|
| Objective of SB 690 | To limit abusive lawsuits against businesses using online tracking technologies |
| Current CIPA Approach | Class-action lawsuits targeting small businesses for alleged privacy violations |
| Potential Damages | Up to $5,000 per website visit, leading to substantial settlement demands |
| Clarification from Torres ruling | Data collection without intent to read does not violate CIPA |
| Retrospective Effect | SB 690 excludes retroactive provisions, applying only to future cases |
Deeper Dive: News & Info About This Topic
- National Law Review: California SB 690 Passes
- JD Supra: Federal Judge Denies CIPA Lawsuit
- Crowell & Moring: Privacy Plaintiffs Test Theories
- Adweek: Lawsuits Against Trade Desk
- Google Search: California Invasion of Privacy Act
Author: STAFF HERE SAN DIEGO WRITER
SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego 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 Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
