Why CIPA Should Be On Your Radar Right Now

The California Invasion of Privacy Act (CIPA) is becoming a major headache for website owners in the United States, and now even affects small businesses outside of California. That means maybe you? With Europe's GDPR making waves globally with all the legally required cookie notices, and with online privacy policy laws evolving, it's crucial to understand how these regulations affect your business website. Let's take a fun deep dive into the world of CIPA lawsuits, website cookies, and more to ensure you're always ahead of the curve.

What Is The California Invasion Of Privacy Act (CIPA)?

The California Invasion of Privacy Act, or CIPA, is a California state law first enacted over 55 years ago (1967), to safeguard the privacy of California residents. This legislation focuses on protecting individuals from unauthorized recording and wiretapping. A recent lawsuit decided that any app or "software" identifying consumers, collecting their data, and analyzing it falls under the legal protection of the California Invasion of Privacy Act (CIPA). For Google Ads & SEO-focused digital marketers like us, this means our go-to tools and our client's websites are now under a tighter microscope.

Unlike GDPR, a European law affecting businesses with European clients, CIPA is a state-specific law impacting any US business website that interacts with California residents. Given California's population and economic power, this probably includes you. Californians are searching online everywhere for research, tourism, moving, second homes, or online shopping.

Why CIPA Lawsuits Are On The Rise

If you're wondering why there's a sudden uptick in CIPA lawsuits, pin the blame on increasing online privacy awareness, opportunistic law firms, and folks looking to cash in. Does your website or ad campaign track phone calls? Do you use contact forms or email newsletter signups? Do you sell online? Have online appointment schedulers? Using Google Analytics or other tracking methods? If you're doing any of those without appropriate disclosures, be prepared for a potential legal battle.

The rise in lawsuits stems from:

• Greater Public Knowledge About Online Privacy Rights
• Increasing Number Of Lawyers Specializing In CIPA Lawsuits
• Higher Stakes With Hefty Fines Due CIPA

What Types Of Online Communications Does CIPA Apply To?

The California Invasion of Privacy Act (CIPA) was initially created to protect residents from third parties eavesdropping on landline phone conversations and made wiretapping and recording communications with California residents illegal.

With advancements in technology, CIPA has expanded its scope to require businesses to obtain consent from California residents before recording calls made via cell phones or online platforms like Zoom or Skype. CIPA can apply to various forms of communication, including phone calls and online interactions involving California residents. Although CIPA was enacted before the invention of modern online tracking tools, a wave of recent lawsuits alleges that using technologies like cookies violates the statute.

• Website Data Collection (Forms, Analytics, )
• Social Media
• Phone Communications (VoIP, Cell, Wired, Call Tracking)
• Emails
• Text Messages (SMS)
• Internet Communications
• Video Conferences
• Online Chat Sessions
• Smart Device Communications

CIPA requires the consent of all parties involved in any communication to lawfully intercept, process, collect, or record it. Violations can result in significant penalties, including fines and damages per occurrence.

What Are The Fines For CIPA Violations?

The act is designed to strongly discourage unauthorized interception and recording of communications by imposing substantial penalties on violators. Let's go into a detailed breakdown of the fines and penalties for violations of the California Invasion of Privacy Act (CIPA):

Civil Penalties

Under CIPA, individuals who have had their communications unlawfully intercepted or recorded can bring a civil lawsuit. The act provides for statutory damages of either:

• $5,000 per violation, or
• Three times the amount of actual damages, whichever is greater.

Criminal Penalties

CIPA violations are also subject to criminal penalties. Violating CIPA can result in misdemeanor charges, with potential penalties including:

• A fine of up to $2,500 per violation,
• Imprisonment in county jail for up to one year, or
• Both fine and imprisonment.

Injunctive Relief

Victims of CIPA violations can seek injunctive relief in civil court, which may involve the court ordering the violator to cease their illegal activities and take steps to prevent further violations.

Attorney's Fees & Costs

In civil cases under CIPA, the prevailing party may be awarded reasonable attorney's fees and litigation costs, adding to the financial consequences for the violator.

Privacy Policy: Your First Line Of Defense

Don’t underestimate the power of a transparent, comprehensive online privacy policy notice and cookie consent pop-up banner. It’s not just a bunch of legal gibberish—it’s your fortress against potential lawsuits. What should your website include to combat CIPA?

• Opt-in Consent Banner That Blocks Third-Party Scripts & Cookies (that track and monitor website visitors)
• Privacy Policy Written Properly (By Attorneys)
  • Data Collection Techniques & Tools (Cookies, Tracking, Etc.)
  • Data Usage, Sharing & Storage Practices
  • Consent Mechanisms For Data Collection
  • Data Protection Measures
• User Rights Regarding Their Data

Make sure your privacy policy is easily accessible, updated regularly, and comprehensive. Remember, exact language and legalese matters. A vague or misleading web banner can still get you into trouble. With the rate at which new privacy laws are being enacted all across the United States, Privacy Policy Automation can help your business website keep up.

Why Website Cookies Could Land You in Hot Water

Cookies: can't live with ’em, can’t live without ’em. Website cookies are tiny bits of data stored on a user's browser to remember their preferences, but they can also be a legal minefield.

• Cookies track user behavior. Without consent, this can lead to lawsuits.
• Storing sensitive information can make you a target for hacking.
• Misuse of cookies can violate various privacy laws, including CIPA and GDPR.

Do You Need a Cookie Consent Banner?

If your business website has California visitors, yes, you need a cookie consent opt-in banner as of 2024. Can we all agree that those pop-up cookie banners are annoying? Unfortunately, they're not just digital annoyances—they're a get-out-of-jail-free card.

• Transparency: Let users know you're collecting data.
• Consent: Gain explicit permission before tracking.
• Compliance: Meet CIPA and GDPR requirements to avoid fines.
• Future Proof: New privacy laws are being enacted all the time, and adding robust solutions now can protect you down the line.

Don't underestimate the power of a well-crafted cookie consent banner. It's small but mighty in keeping your business website legally covered.

Scenarios To Help Avoid CIPA Lawsuits

Let's put on our imagination hats and walk through some scenarios.