The California Consumer Privacy Act (CCPA) has given rise to an increase in legal actions involving website tracking technologies. Plaintiffs are utilizing older wiretapping statutes to pursue statutory damages, leveraging the CCPA’s expansive definition of “personal information,” which now includes data collected from online tracking.
A central case in this legal trajectory is M.G. v. Therapymatch. The federal judge allowed claims under both the California Invasion of Privacy Act and the CCPA to proceed against Therapymatch, doing business as Headway. The claims focus on the alleged interception and unauthorized disclosure of personal information to Google by using tracking tools.
This case sets a critical precedent, indicating that courts may permit CCPA claims to move beyond the initial pleadings when plaintiffs assert that personal data disclosures occurred without consent, potentially exposing companies to significant financial liabilities if reasonable security practices are not demonstrated. Under the CCPA, companies may be required to demonstrate that their data practices align with established security standards, particularly regarding what constitutes “personal information.”
Simultaneously, the California Invasion of Privacy Act (CIPA) introduces formidable challenges with potential penalties of up to $5,000 per violation, demanding businesses conduct meticulous investigations to understand the specifics of each case. As the case law evolves, companies must be vigilant in assuming potential litigation strategies addressing these claims.
Responses to these claims should involve verifying consent mechanisms, reassessing terms of use—particularly regarding arbitration clauses, and analyzing personal jurisdiction defenses, as seen in cases currently under review such as the appeal involving Shopify.
Moreover, evaluating existing contracts for clauses restricting the use of data by third-party vendors and understanding the data flows will play a pivotal role in choosing whether to pursue an early resolution or continue litigation. Legal advisors suggest that businesses adopt robust monitoring processes and risk strategies to mitigate potential claims, including updating privacy notices, refining notice and consent tactics, and negotiating data use limitations with vendors.
The legal landscape surrounding data privacy and the use of tracking technologies is clearly becoming more complicated. Companies must prepare themselves for continued scrutiny and potential litigation by refining their privacy practices to remain compliant with evolving statutory requirements.
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