Compliance Stuff

  A broad coalition of California businesses, nonprofits, healthcare providers, and community organizations formally launched a campaign this week to push for reform of the state law being weaponized against businesses that use standard website tools. The Reform CIPA Coalition is backing the revival of legislative efforts to limit the law’s scope and put a halt to the trend that has led to thousands of lawsuits and countless demand letters, arbitrations, and settlements. The coalition’s April 6 launch is a meaningful development and signals a renewed effort to push for a legislative fix that was paused last year. Here’s what you need to know and some steps you can take as the debate shakes out. The Law That Wasn’t Built for the Internet The California Invasion of Privacy Act (CIPA) was enacted in 1967 to address old-fashioned wiretapping and eavesdropping: phone calls, recording devices, and the kinds of things you’d expect to see in spy movies and soap operas . It was never desig...

In a significant win for businesses fighting CIPA claims, a California federal court just held that searching sensitive health terms and distributing that information to third parties is not a legally protectable privacy interest, foreclosing a plaintiff from pursuing a class action lawsuit. Although the court allowed the plaintiff to amend his complaint and fix its deficiencies, the February 23 decision marks a significant shift in evaluating a plaintiff’s so-called injuries in these cases. Rather than accepting plaintiff’s threadbare allegations of harm, the court in  Maghoney v. Dotdash Meredith Inc.  dug into the allegations of the complaint and questioned whether the plaintiff had actually alleged awareness that his information had been shared with third parties and whether any data shared could have been associated with his name or other personally identifiable information. Here is what you need to know to use this decision to successfully defend against CIPA lawsuits, ...