Brian Ross Adams

California businesses and nonprofits are facing a growing threat from a law that was never designed for the modern internet. The California Invasion of Privacy Act, or CIPA, was enacted in 1967 to stop illegal wiretapping in an era of landlines and phone booths. Today, however, it is increasingly being used to target ordinary website technologies — analytics tools, chat functions, cookies and session replay software — that businesses of every size rely on to operate in the modern economy. What began as a criminal wiretapping statute has evolved into a massive litigation machine. At a skyrocketing rate, businesses and nonprofits across California are receiving legal demand letters accusing them of violating CIPA simply for using standard website tools. Most have never heard of the law before the letter arrives. By then, they are often presented with an impossible choice: pay a settlement or spend far more fighting in court. The scale of the problem is staggering, even if the full extent remains hidden from public view. An estimated 100,000 demand letters tied to CIPA claims have reportedly been sent to businesses. The economic harm caused by those letters is estimated to exceed $1 billion, according to a recent study by Oxford Economics, and as most demand letters are sent privately rather than filed in court, there is no complete public accounting of the economic damage being inflicted on Californians. However, the study makes it clear that businesses of all sizes are at risk. From class-action settlements totaling $150 million to family businesses — many operating on thin margins — companies across California are increasingly being pressured into settlements without any actual harm occurring. Read more at: politico.com/sponsor-content…

Small businesses are the backbone of California’s economy. They create jobs, serve communities, and keep Main Streets alive. But today, many are facing a growing threat from abusive lawsuits under an outdated 1960s law never designed for modern websites. Support Reform CIPA. Support SB 690. Join us at ReformCIPA.com #ReformCIPA #SB690

Outdated laws shouldn’t punish small businesses for using basic website tools. It’s time to #ReformCIPA

#PressRelease Reform CIPA Coalition Brings Together Businesses and Organizations from Across the State to Stop Predatory Lawsuits from Driving Up Costs for Californians Sacramento, CA – A surge in predatory lawsuits under the outdated California Invasion of Privacy Act (CIPA) is inflicting severe economic and community harm across the state. To stop these damaging legal shakedowns and protect affordability for California families, a broad coalition of nonprofits, community organizations, and businesses has launched ReformCIPA.com. This growing coalition supports legislative solutions like SB 690 to curb this economic and community burden by ensuring modern digital practices are governed by modern privacy laws, rather than a statute written decades before the internet existed. Originally designed in the 1960s to prevent wiretapping, the law is now being exploited by trial lawyers to target organizations over routine website tools, such as chat features and analytics. “SB 690 helps protect patient privacy while stopping the misuse of an outdated law against providers using standard technology,” said Soua Vang, President & CEO, @CAHSAHUpdates. “It is a first step to restoring clarity and fairness, and keeps the focus where it should be – on patient care.” Economic Devastation and Rising Costs These abusive lawsuits are making it increasingly difficult to operate affordably in California. Organizations, including non-profits are flooded with “pay up or get sued” demand letters, and because fighting these claims in court is often more expensive than settling, many are pressured into paying massive, unjust settlements. These legal shakedowns ultimately function as a hidden tax on consumers. “At a time when affordability is one of the biggest challenges facing California families and California is facing budget deficits, we should not allow predatory lawsuits to drive up costs,” said Robert Rivinius, President, @FamBusAssocCA. “Amending CIPA will protect consumers while stopping legal shakedowns that hurt small businesses and the communities they serve.” With everyday Californians already struggling under the weight of rising housing, energy, food, and healthcare costs, forcing small businesses to spend thousands on legal defense guarantees those financial burdens are passed directly to families that can’t afford these prices. Furthermore, this economic drain is happening at a time when the state itself is already facing significant budget deficits and affordability crises. Draining Community Resources Beyond the direct economic strain, this wave of litigation is actively damaging local communities. Essential sectors, including healthcare providers, non-profit organizations, and small businesses, are being heavily targeted. Instead of genuinely protecting privacy—which is already robustly guarded by modern laws like the California Consumer Privacy Act (CCPA)—these lawsuits penalize community organizations simply for using standard online tools meant to help them better serve the public. By draining time and vital funds from these groups, predatory litigation directly hurts the vulnerable communities that rely on their services. To learn more or join the coalition, visit ReformCIPA.com Contact: [email protected] #ReformCIPA