Governor Newsom Signs S.B. 690 Into Law
As a follow up to our previous Client Alert on S.B. 690, on Wednesday, Governor Newsom signed S.B. 690 into law, which will go into effect on January 1, 2027. S.B. 690 amends California Penal Code § 637.2 to eliminate the private right of action for claims under § 638.51—the provision plaintiffs’ attorneys have increasingly used to target businesses over common website tracking technologies such as pixels, cookies, and analytics tools.
What This Means for Businesses
This is a significant development for businesses that have faced—or are currently facing—§ 638.51 trap-and-trace/pen register claims based on common website tracking technologies. With the private right of action now formally eliminated, enforcement authority rests solely with the California Attorney General.
The new law applies retroactively to claims filed within two years prior to the bill’s effective date, January 1, 2027. This should meaningfully impact pending litigation and settlement negotiations; though, we anticipate this retroactive application will be the subject of litigation. Even so, businesses currently defending against § 638.51 claims should reassess their strategies accordingly.
Looking Ahead
Importantly, S.B. 690 does not eliminate all private rights of action under CIPA. Plaintiffs are sure to still bring CIPA claims based on the same conduct that they alleged violated § 638.51. Those claims would come under other sections of CIPA, such as § 631(a) (wiretapping) and § 632 (eavesdropping on confidential communications). However, claims under these sections of CIPA contain more elements and there are more defenses available than there have been for claims under § 638.51.
On these other private rights of action under CIPA, Governor Newsom calls on the California Legislature for further reform, noting these other provisions “are also susceptible to abuse by overly aggressive litigants.”
If you have questions about how this development affects your company, what remains of CIPA, or are facing these types of claims, please contact John Landolfi, Chris Ingram, Chris LaRocco, or Chris Belmarez.
