Privacy Suits Under California Wiretap Law Stand on Shaky Ground

"It's true we've gotten some decisions that are favorable for the defense side, but there's also a number of courts that have ruled in the other direction. It's still such a minefield, and it makes it difficult for companies that are targeted to make decisions about whether to fight the claims."

"The pressure on defendants to reach settlements in lower-value cases because of the lack of judicial consensus—particularly on those without deep pockets—is enormous."

"The initial wave of online CIPA lawsuits pretty much just sailed through the motion-to-dismiss stage, but recent decisions dismissing CIPA lawsuits are signs the tide is beginning to turn against consumers who sue over the tracking tools."

The California Invasion of Privacy Act (CIPA), originally enacted in 1967 to combat telephone surveillance, is now being applied to online tracking practices by consumers suing ad-tech companies like Meta and Google. Defendants argue CIPA was never intended for internet commercial activities, while consumers claim tracking pixels constitute illegal wiretapping. Judicial decisions remain inconsistent across courts, leaving companies uncertain about compliance obligations and settlement pressures. Recent dismissals suggest a potential shift favoring defendants, though the legal landscape remains unsettled. Resolving these disputes will likely require legislative clarification or definitive appellate court rulings to determine whether CIPA litigation becomes a permanent feature of online privacy law.

Read at Bloomberglaw