CIPA Reform: Is A Whittled-Down Version Of SB 690 On The Verge Of Becoming Law? A Recent Committee Vote Gives Businesses A Glimmer Of Hope.

In recent years, a handful of pro se plaintiffs and plaintiffs’ firms have sent tens of thousands of demand letters to businesses, threatening class action lawsuits under the California Invasion of Privacy Act (CIPA) unless those businesses pay settlements averaging $10,000 to $25,000.

The demands typically assert claims under CIPA arising from businesses’ alleged use of common tracking technologies on their websites. One of the most prominent theories is based on Section 638.51 of CIPA, which prohibits the installation of “pen registers” or “trap and trace” devices without a court order. The viability of this legal theory has not been squarely addressed by any appellate court yet—though appeals are pending, including in Variety Media, LLC v. Superior Court—and thus trial courts have mostly allowed pen register claims to survive early motions to dismiss. This has only emboldened plaintiffs. By some estimates, plaintiffs’ firms asserting these claims have used CIPA allegations to collect over half a billion dollars in settlement payments from businesses.

Businesses rallied for reform, but early efforts at a legislative fix—known as Senate Bill 690—seemingly stalled.

Last night, however, the California Assembly’s Committee on Privacy and Consumer Protection held a meeting that gave businesses a glimmer of hope. A long line of local and national business associations and community members appeared at the meeting to voice their strong support for a revised version of SB 690, which is more narrowly focused on stemming the tide of demands asserting claims under CIPA’s pen register provision. As amended, the bill contemplates a retroactive elimination of Section 638.51’s private right of action. The bill received 10 votes, with the vote left open for absent committee members. The tone of the discussion appeared cautiously optimistic. Both proponents and opponents seemed to recognize that work remains to be done, but that the bill could reach a point that would be tolerable for both sides.

The legislature enters its summer recess on adjournment on July 2, 2026, and reconvenes on August 3, 2026. For SB 690 to have any meaningful impact this year, it will need to be passed into law before the legislature adjourns on August 31, 2026.