California, September 1, 2025
News Summary
On June 3, 2025, the California Senate passed Senate Bill 690 (SB 690) unanimously, aimed at protecting small and medium-sized businesses from lawsuits under the California Invasion of Privacy Act. The bill seeks to exempt certain uses of online tracking technologies from liability, thus alleviating fears of expensive litigation and aligning with existing privacy laws. By clarifying the applicability of CIPA, the legislation seeks to foster a better business environment while ensuring consumer privacy.
California has taken a significant step in addressing the growing concerns of small and medium-sized businesses facing lawsuits under the California Invasion of Privacy Act (CIPA). On June 3, 2025, the California Senate unanimously passed Senate Bill 690 (SB 690) with a 35-0 vote. The bill is designed to protect businesses from what many consider abusive litigation stemming from the use of online tracking technologies, including cookies and analytics tools.
California’s CIPA, originally established to prevent the interception of electronic communications, requires consent for such interceptions. However, attorneys are increasingly using this law to pursue lawsuits against businesses that utilize online tracking technologies, arguing that these actions infringe upon user privacy by capturing data from vulnerable channels, like clicks and keystrokes. This has created a wave of litigation that targets smaller businesses rather than the technology providers themselves, leading to a flurry of lawsuits and significant financial settlement demands.
The cost of defending against these class-action claims can escalate quickly, as businesses face statutory damages of up to $5,000 per website visit. Settlement offers can range between $50,000 and $200,000, making it easier for smaller firms to settle rather than engage in costly litigation. A recent ruling by the U.S. District Court for the Northern District of California provided some relief by narrowing CIPA’s liability, stating that merely collecting data does not constitute a violation—there must be proof that the data collector attempted to read the user’s communication.
SB 690, introduced by State Senator Anna Caballero on February 24, 2025, aims to clarify and limit CIPA’s applicability concerning online business practices. The legislation seeks to exempt certain commercial uses of cookies and tracking technologies from CIPA liability, which could significantly reduce the threat of private lawsuits for businesses processing personal information for commercial purposes. This exemption aligns with existing privacy laws, including the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA).
By passing SB 690, the California Senate is working to restore legal certainty for businesses, allowing them to concentrate on compliance with privacy regulations rather than defending against imminent lawsuits. However, the bill has been carefully designed to have no retroactive effect, meaning it will not impact any ongoing cases, but will apply only to future cases once it clears the Assembly.
The primary goal of SB 690 is to harmonize California’s various privacy laws while alleviating the burdens of litigious practices that hinder business operations. If successful in the Assembly, the bill could mark a significant shift in how businesses approach online privacy and consent, helping them navigate the complex landscape of privacy regulations without the fear of overwhelming legal challenges.
Background on CIPA and Online Tracking
The California Invasion of Privacy Act was enacted as a protective measure for electronic communications. It has been invoked in a new context as technology has evolved, particularly with the rise of online tracking practices that have become common among businesses. These practices, while useful for gaining insights into customer behavior and improving services, have also raised privacy concerns, leading to legal scrutiny and litigation.
Implications of SB 690
The passage of SB 690 is expected to significantly impact how businesses operate online, especially in terms of their usage of tracking technologies. By alleviating fears of litigation for legitimate business practices, the bill seeks to strike a balance between consumer privacy and the need for businesses to engage in effective online marketing strategies.
FAQ
What is SB 690?
SB 690 is a California Senate bill aimed at limiting abusive lawsuits under the California Invasion of Privacy Act (CIPA) related to online tracking technologies.
What does SB 690 accomplish for businesses?
The bill aims to exempt certain commercial uses of cookies and other tracking technologies from CIPA liability, reducing the risk of costly lawsuits and allowing businesses to focus on compliance.
How does SB 690 affect ongoing lawsuits?
SB 690 does not have a retroactive effect; it will not impact ongoing cases, but will apply prospectively once passed in the Assembly.
Key Features of SB 690
| Feature | Description |
|---|---|
| Exemption from CIPA Liability | Exempts certain commercial uses of cookies and tracking technologies. |
| Focus on Compliance | Allows businesses to prioritize compliance with privacy regulations over potential litigation. |
| No Retroactive Effect | Does not affect ongoing lawsuits; applies only to future cases. |
| Alignment with Existing Laws | Definitions in SB 690 align with California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA). |
Deeper Dive: News & Info About This Topic
- CDF Labor Law Blog: Navigating CIPA
- JD Supra: Federal Judge Denies CIPA Lawsuit
- National Law Review: California SB 690 Passes
- Hunton Andrews Kurth: California Bill May Curb Abusive Lawsuits
- Daily Journal: The Beginning of the End for CIPA Litigation
- Wikipedia: California Invasion of Privacy Act
- Google Search: California Privacy Laws
- Google Scholar: California Invasion of Privacy Act
- Encyclopedia Britannica: Privacy Law
- Google News: California Privacy Laws
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, 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 the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
