What's Happening?
The California Legislature is advancing Senate Bill 690 (SB 690), which aims to address the surge of lawsuits alleging violations of the California Invasion of Privacy Act (CIPA). Originally introduced in 2025, the bill sought to create a broad 'commercial
business purpose' exception to several CIPA provisions, including wiretapping and eavesdropping. Recent amendments have narrowed the bill's scope, focusing on restricting private enforcement for claims under CIPA's pen register and trap-and-trace provisions related to websites and online applications. The amendment would authorize only the California Attorney General to bring actions for violations of section 638.51, potentially dismissing many pending claims based on website tracking. This legislative move is in response to plaintiffs using section 638.51 to challenge routine website operations, alleging unauthorized tracking activity.
Why It's Important?
The amendment to SB 690 is significant as it could reduce the liability businesses face from lawsuits premised on standard internet communications and technical processes. By limiting private enforcement, the bill aims to curb the recent surge of lawsuits that have characterized ordinary website functionality as surveillance activity. This legislative change could provide relief to businesses that have been targeted by claims seeking monetary damages for alleged unauthorized tracking. If enacted, the bill would retroactively impact claims filed within two years before its operative date, potentially dismissing many pending lawsuits. This development highlights the ongoing debate over digital privacy rights and the balance between protecting consumer data and enabling routine business operations.
What's Next?
SB 690 is still pending in the California Legislature and must clear additional legislative steps before it can be sent to the governor for approval. Businesses affected by CIPA-related demands are advised to monitor the bill's progress closely. If enacted, the amendment could significantly alter the legal landscape for digital privacy claims in California, influencing how businesses approach website tracking and data collection practices. Stakeholders, including privacy advocates and business groups, may engage in lobbying efforts to shape the final version of the bill.
