CAL SMACNA held a webinar in September to update members on the status and nature of California Invasion of Privacy Act (CIPA) lawsuit abuse in California. Trial lawyers continue to file CIPA claims against businesses and commercial website owners, alleging privacy, wiretap, and pen-register violations. These suits seek tens of thousands to millions of dollars in settlements—even when plaintiffs allege no injury, are not customers, and have no connection to the business.
The webinar, hosted by Fisher & Phillips law firm, addressed what to expect and how to respond if a claim is made against your website, the impact of SB 690 (including the two-year retroactivity) and remaining risks, and practical steps to reduce exposure and help avoid lawsuits.
CAL SMACNA posted a notice alerting members to this issue and explaining actionable steps to mitigating risk. These include
- conducting a comprehensive website audit with advice from your IT, marketing, and legal teams
- implementing robust, affirmative consent mechanisms
- updating and prominently displaying your privacy policy
- documenting and maintaining consent records
- reviewing and updating contracts with third-party vendors
- considering technical mitigations
- training relevant teams and establishing governance
- monitoring developments and consult counsel
CAL SMACNA is pursuing two tracks to help its membership:
- Actively alerting and educating members to these new claims
- Lobbying in Sacramento for the passage of SB 690 (Caballero) to mitigate these claims by exempting any “commercial business purpose” as defined by the California Consumer Privacy Act (CCPA) from civil and criminal liability pursuant to the California Invasion of Privacy Act (CIPA), which prohibits wiretapping, eavesdropping on, or recording confidential communications, intercepting and recording cellular communications, or using a pen register or trap and trace device.
Read the full text of CAL SMACNA’s bulletin on this topic at cal-smacna.org/membership-legal-alert-new-shakedown-lawsuits-hitting-california-businesses ▪
