California, September 1, 2025
News Summary
California has passed Senate Bill 690 (SB 690), a landmark legislation aimed at shielding small and medium-sized businesses from rising lawsuits linked to the California Invasion of Privacy Act (CIPA). This bill, which received unanimous approval from the Senate, seeks to exempt certain commercial uses of tracking technologies from CIPA liability. With an increasing number of lawsuits targeting smaller enterprises, SB 690 aligns closely with existing privacy laws to reduce the burden of litigation on businesses during these challenging times.
California is witnessing a significant legislative development aimed at protecting small and medium-sized businesses from a rising tide of lawsuits related to the California Invasion of Privacy Act (CIPA). On June 3, 2025, the California Senate passed Senate Bill 690 (SB 690) with a unanimous vote of 35-0, targeting the abuse of CIPA lawsuits that have surged due to online tracking technologies.
Businesses in California have been increasingly liable under CIPA, which is designed to prevent the interception of electronic communications without consent. This statute has been interpreted by some legal advocates to include tracking methods such as cookies, Meta Pixel, Google Analytics, and LinkedIn Insight. Attorneys have been focusing on suing small and medium-sized enterprises rather than larger technology providers, as they present less risk and lower costs for litigation.
These class-action lawsuits can lead to statutory damages of $5,000 for each website visit, prompting settlement demands that often range between $50,000 and $200,000. For many businesses, settling is more financially viable than dragging out legal battles, which can be both costly and time-consuming.
Recent judicial developments have narrowed the interpretation of CIPA liability. A ruling in the case of Torres v. Prudential Financial, Inc. established that merely collecting user data does not constitute a violation of CIPA. The court specified that proof must be provided that the party involved attempted to read or actually read the contents of a user’s communication while it was in transit.
SB 690 aims to mitigate the impact of these lawsuits by exempting certain commercial uses of cookies and tracking technologies from CIPA liability. By doing so, it seeks to protect businesses engaged in data processing for commercial purposes from predatory litigation practices. The definition of “commercial business purpose” in SB 690 aligns closely with other California privacy laws, namely the California Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA).
The legislation intends to provide legal certainty for businesses coping with CIPA litigation, allowing them to concentrate on compliance with established privacy regulations rather than defending against costly lawsuits. Importantly, SB 690 does not include a retroactive provision, which means that it will apply prospectively and will not affect cases already in litigation.
SB 690 reflects a broader goal of harmonizing California’s privacy laws and alleviating the burden faced by businesses from abusive litigation. As it moves to the Assembly for further consideration, its implementation could significantly change the landscape of user data tracking and privacy compliance for California businesses.
Key Features of SB 690
- Passed California Senate unanimously (35-0).
- Exempts certain commercial uses of cookies from CIPA liability.
- Aligns definitions with CCPA and CPRA.
- Does not include a retroactive provision—applicable only prospectively.
- Aims to reduce the risk of costly class-action lawsuits.
FAQ
What is SB 690?
SB 690 is a California Senate bill designed to limit lawsuits under the California Invasion of Privacy Act (CIPA) against businesses that utilize online tracking technologies.
How does SB 690 affect small businesses?
The bill aims to protect small and medium-sized businesses from costly class-action lawsuits by exempting certain uses of cookies and tracking technologies from CIPA liability.
When will SB 690 take effect?
SB 690 will take effect only after it passes through the Assembly, and its provisions will apply prospectively, meaning it will not affect ongoing litigation.
Deeper Dive: News & Info About This Topic
- National Law Review: California SB 690 Passes
- JD Supra: Federal Judge Denies CIPA Lawsuit
- Daily Journal: The Beginning of the End for CIPA Litigation
- Crowell & Moring: Privacy Plaintiffs Pursue Claims
- Hunton Andrews Kurth: California Bill to Curb Abusive Lawsuits
- Wikipedia: California Invasion of Privacy Act
- Google Search: California Privacy Laws
- Google Scholar: California Invasion of Privacy Act
- Encyclopedia Britannica: California Privacy
- Google News: California Privacy Legislation
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles 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 LA Auto Show, Hollywood Film Awards, and the Los Angeles Marathon. Our coverage extends to key organizations like the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology that power the local economy such as Warner Bros. and SpaceX. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HEREHuntingtonBeach.com, and HERESantaAna.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
