Does California Invasion of Privacy Act Apply to My Business?

Have You Received a CIPA Demand or Pre-Arbitration Letter Over Website Tracking?

Many businesses (based both in and out of California) are being targeted by California litigants due to the use of tracking cookies, chat widgets, or analytics deployed on their website. CIPA plaintiff attorneys allege this practice illegally intercepts protected communications and data.

In practical terms, even a seemingly standard Meta Pixel or chat tool can be framed as an illegal “wiretap” under CIPA.

California Privacy Law

As a national leader in online consumer privacy, California has enacted protections to ensure Californians have the right to privacy and the right to know if and how their data is being used.

Do California Privacy Laws Apply to Your Business?

Due to the interconnectivity of our digital economy, Californians are interacting with businesses all over the country.

California State privacy laws can apply to out-of-state businesses because they focus on protecting California residents—regardless of where a company is located.

CIPA vs. CCPA/CPRA

CIPA is an anti‑wiretapping statute in the California Penal Code that creates a private right of action with statutory damages up to $5,000 per violation. By contrast, CCPA/CPRA applies to for‑profit entities meeting specific thresholds and generally limits private actions to certain data breaches.

A company can fall outside CCPA/CPRA thresholds but still face CIPA risk if it records or intercepts communications without all‑party consent, particularly with website tracking and chat tools.

What Does CIPA Cover?

CIPA prohibits intercepting, eavesdropping on, or recording confidential communications without all‑party consent across phone, electronic, and certain web interactions, subject to statutory exceptions. The provisions most commonly at issue are Section 631(a) (anti‑wiretapping), Section 638.51 (pen register and trap/trace prohibitions) and Section 637.2 (private right of action).

Why Did I Receive a CIPA Violation?

Modern litigants argue website technologies, like cookies, “intercept” communications in real time or allow third parties to do so without adequate disclosures and all‑party consent. If you implement these tools, you may be exposing your business to CIPA liability.

A Practical Applicability Test

• If your website or app is used by California visitors, or your business uses recorded or monitored phone lines, you should evaluate CIPA compliance. Geographic location of your headquarters is not determinative for CIPA exposure.
• Deploying session replay, heatmaps, keystroke tracking, chatbots, or marketing pixels that transmit data to vendors increases risk, particularly if content of communications is accessible to a third party.

Key Questions to Ask

• Do we capture contents of communications (e.g., chat messages, form inputs, keystrokes, URL strings) or allow third parties to access them? If so, you may be at risk of a CIPA violation.
• Do we obtain clear, prior, all‑party consent before recording calls, monitoring chats, or enabling tracking that captures message content? If not, updates are needed.

Website Technologies in the Crosshairs

Here are some of the website or marketing technologies (involving the collection or use of consumer activity) putting businesses at risk:

• Chat widgets and chatbots

• AI-powered analysis tools

• Session Replay software

• Advertising and analytics pixels (like Meta or TikTok Pixel)

• Third-party cookies and web beacons

• Video and audio tracking tools

If you utilize these tools on your website, you may be vulnerable to a CIPA violation. Engage experienced counsel after receiving a demand or complaint. Alternatively, a California Privacy Attorney can assist by auditing chatbots, pixels, cookies, and session replay configurations to pressure‑test risk and defenses.

At Kronenberger Rosenfeld, LLP our CIPA defense attorneys regularly defend small and large businesses across the country involved in California Invasion of Privacy litigation. Contact our team today.

FAQs

What is CIPA?

The California Invasion of Privacy Act prohibits intercepting, eavesdropping on, or recording confidential communications without the consent of all parties, and it provides statutory damages per violation.

Who does CIPA apply to?

Any organization that communicates with California residents or enables third parties to access the contents of those communications, including via phone systems, websites, apps, and chat tools.

Does CIPA apply if we’re not based in California?

Yes. If California users interact with your site, app, or phone lines, you can face CIPA claims, subject to jurisdiction and case‑specific facts.

How is CIPA different from CCPA/CPRA?

CCPA/CPRA sets consumer privacy rights and applies based on business thresholds; CIPA is an anti‑wiretap law focused on all‑party consent to recording or interception and can apply regardless of business size. CPPA/CPRA claims are generally brought by California state authorities. CIPA claims are frequently asserted by private litigants and their attorneys.

What triggers a CIPA violation online?

Session replay, chat widgets, co‑browse tools, pixels/cookies, heatmaps, and keystroke trackers—especially when they capture message contents or allow third‑party access. Some plaintiffs may even claim their information was intercepted simply by visiting your website, even if they did not make a purchase or sign up to create an account.

This information is provided for general informational purposes only and does not constitute legal advice.