Businesses with websites that employ cookies and other tracking technologies (collectively, “internet tracking technology”) can breathe a partial sigh of relief. The private right of action under the California Invasion of Privacy Act (“CIPA”), relating to violations of Section 638.51 “alleged to arise from conduct occurring on an internet website, online application, or mobile application,” will be eliminated as of January 1, 2027, as Governor Newsom signed SB-690 on September 30, 2026. The law is retroactive and will apply to all pending lawsuits that commenced after January 1, 2025. Only the California Attorney General will be able to bring pen register and trap-and-trace claims related to conduct occurring on websites, apps, and mobile apps.
However, SB-690 is not a total shield to CIPA claims arising from internet tracking technology, as it does not address other CIPA provisions such as wiretapping (Section 631) and eavesdropping (Section 632), which are frequently used by plaintiffs to target common internet tracking technology notwithstanding that these laws predate internet tracking technology and conflict with the way the newer California Consumer Privacy Act regulates them. In Governor Newsom’s signing statement, he specifically called on the California Legislature to address CIPA again next year to address CIPA’s “other decades-old statutes that are also susceptible to abuse by overly aggressive litigants,” while “ensur[ing] a fair balance between protecting private information and preventing rapacious litigation.”
While pen register claims will soon be relegated to the exclusive authority of the California Attorney General, plaintiffs frequently allege a laundry-list of privacy violations (e.g., federal law, other state laws, common law, constitutional violations) related to the same internet tracking technologies.
Now is a great time to audit your website and app internet tracking technologies, especially given that privacy programs and notices should be updated annually. Here are some initial key action items to include in that review:
- Ensure that your cookie banner and, if applicable, consent preference tool (collectively “CMP” (consent management platform)) functions as intended to address state consumer privacy laws, while also addressing wiretapping risks.
- Confirm that all internet tracking technology employed on the website or app is captured and controlled by the CMP.
- Locate and review your required written contracts with the internet tracking technology vendors to ensure that the contracts meet all statutory requirements and the internet tracking technology is properly categorized on the CMP to address both state consumer privacy law requirements and wiretapping risks.
- Review your privacy policy, CMP, and other notices to ensure that all statements are accurate. The template language from CMP vendors will likely need to be modified.
- Implement a program to assess and address onboarding and offboarding of internet tracking technologies and to monitor the CMP to ensure that it continues to function properly.
Of course, this list is in no way definitive and does not address all privacy claims that are now being raised concerning internet tracking technology or the nuances of the law developing in this area. A more detailed review of marketing practices and internet-based collection is required to fully assess risk and craft ways to reduce liability while still achieving the business’s goals.
/>i
