California’s Invasion of Privacy Act: A New Frontier for Website Tracking Litigation

In an article published by the American Bar Association’s Business Law Section on August 5, 2024, AGG partners Jackie Cooney, Damon Eisenbrey, and Chesley McLeod discussed the recent wave of lawsuits and arbitration demands under California’s Invasion of Privacy Act (“CIPA”).

The article explores why there is an increase in claims, the basis for the claims, and recent case developments stemming from the claims. Additionally, the attorneys offer insights on what companies can do to proactively prepare for a claim — even before they receive a complaint or arbitration demand — including reviewing their technology and compliance practices, ensuring their websites and notices are compliant with state laws, and assessing the transparency of their website tracking technology.

With legal risks abound, Jackie, Damon, and Chesley advise companies to remain vigilant for CIPA-related claims.

“Plaintiffs’ firms do not appear to discriminate based on company size or industry,” the attorneys said. “If a company operates a website in the U.S. and California consumers visit it, it is a potential target.”

To read the full article, ABA Business Law Section members may click here.