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California Legislature Advances Bill Targeting Wave of CIPA Pen Register Lawsuits

By Kathryn Cahoy, Libbie Canter, Matthew Verdin, Julia Barrero & Bryan Ramirez on July 28, 2026
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On July 1, 2026, a California legislative committee advanced amendments to SB 690 that would eliminate private suits asserting website-based “pen register” claims under the California Invasion of Privacy Act (“CIPA”), leaving enforcement exclusively to the California Attorney General.  The amendments come amid a surge of lawsuits and demand letters challenging the use of website technologies under the pen register provision, which the committee described as a “poster child for abusive lawsuits.”  According to the committee analysis, “[b]ecause the potential liability can be staggering,” businesses often settle quickly, thereby “encouraging vexatious litigants to continue blasting out demand letters.”

SB 690 was introduced in 2025 and passed the California Senate by a 35-0 vote on June 3, 2025.  As originally drafted, the bill would have exempted the processing of personal information for “commercial business purpose[s]” from liability under multiple CIPA provisions, including the wiretapping, confidential-recording, and pen register provisions.  The Assembly Committee on Privacy and Consumer Protection concluded, however, that the bill was “overly broad and may entail unintended consequences.”  The bill’s author therefore agreed to narrow the proposal to respond “directly and surgically to the most pressing problem at hand” by eliminating website-based pen register claims.

As amended, the bill would:

  • Eliminate the private right of action for website-based pen register claims.  Claims arising from conduct “occurring on an internet website, online application, or mobile application” may be brought “only by the Attorney General.”
  • Preserve Attorney General enforcement authority.  The California Attorney General would retain authority to pursue alleged violations and seek available remedies.
  • Apply retroactively to pending claims.  The bill would apply retroactively to “any pending claim in an action commenced within two years before the operative date” of the legislation.
  • Leave other CIPA provisions intact.  The bill would not alter private rights of action under CIPA’s wiretapping provision (Section 631) or confidential recording provision (Section 632).  The committee analysis notes that the Legislature “may wish to consider a more comprehensive set of solutions” addressing those provisions in the future.

SB 690 remains subject to further amendment and must still pass the Assembly, receive Senate concurrence in any Assembly amendments, and be signed by the Governor.  If enacted this session, the bill would become operative on January 1, 2027, absent an urgency clause.  As currently drafted, the retroactivity provision could affect pen register claims filed during the two years preceding that date, potentially impacting a substantial number of recently filed lawsuits and demand letters.

Photo of Kathryn Cahoy Kathryn Cahoy

Kate Cahoy co-chairs the firm’s Class Action Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. A highly skilled litigator, she defends clients in complex, high-stakes class action disputes, securing significant victories across various industries, including technology…

Kate Cahoy co-chairs the firm’s Class Action Litigation Practice Group and serves on the leadership committee for the firm’s Technology Industry Group. A highly skilled litigator, she defends clients in complex, high-stakes class action disputes, securing significant victories across various industries, including technology, entertainment, consumer products, and financial services. Kate also plays a key role in the firm’s mass arbitration defense practice. She regularly advises companies on the risks associated with mass arbitration and has a proven track record of successfully defending clients against these challenges.

Leveraging her success in class action litigation and arbitration, Kate helps clients develop strategic and innovative solutions to their most challenging legal issues. She has extensive experience litigating cases brought under California’s Section 17200 and other consumer protection, competition, and privacy laws, including the Sherman Act, California Consumer Privacy Act (CCPA), California Invasion of Privacy Act (CIPA), Wiretap Act, Stored Communications Act, Children’s Online Privacy Protection Act (COPPA), Video Privacy Protection Act (VPPA), along with common law and constitutional rights of privacy, among others.

Kate’s exceptional legal work has earned widespread recognition. The Daily Journal named her successful defense of Meta and Microsoft cases described below as among its Top Verdicts, recognizing some of the largest and most impactful verdicts in California.

Recent Successes:

Represented Meta (formerly Facebook) in a putative nationwide advertiser class action alleging violations under the California Unfair Competition Law (UCL) related to charges from allegedly “fake” accounts. Successfully narrowed claims at the pleadings stage, defeated class certification, opposed a Rule 23(f) petition, won summary judgment, and defended the victory on appeal to the Ninth Circuit. (Daily Journal, Top Verdicts of 2021. Law.com recognized Kate with a Litigator of the Week Shoutout.
Defeated a landmark class action lawsuit against Microsoft and OpenAI contending that the defendants scraped data from the internet for training generative AI services and incorporated data from users’ prompts, allegedly in violation of CIPA, the Computer Fraud and Abuse Act (CFAA), and other privacy and consumer protection laws. (Daily Journal, Top Verdicts of 2024.)

Kate regularly contributes to the firm’s blog, Inside Class Actions, and was recently featured in a Litigation Daily interview titled “Where Privacy Laws and Litigation Trends Collide.” In recognition of her achievements in privacy and antitrust class action litigation, the Daily Journal named her as one of their Top Antitrust Lawyers (2024), Top Cyber Lawyers (2022), and Top Women Lawyers in California (2026). Additionally, she received the Women of Influence award from the Silicon Valley Business Journal, was recognized by the Daily Journal as a Top Attorney Under 40, and also was named to Bloomberg Law’s They’ve Got Next: The 40 Under 40 list.

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Photo of Libbie Canter Libbie Canter

Libbie Canter represents a wide variety of multinational companies on managing privacy, cyber security, and artificial intelligence risks, including helping clients with their most complex privacy challenges and the development of governance frameworks and processes to comply with U.S. and global privacy laws.

Libbie Canter represents a wide variety of multinational companies on managing privacy, cyber security, and artificial intelligence risks, including helping clients with their most complex privacy challenges and the development of governance frameworks and processes to comply with U.S. and global privacy laws. She routinely supports clients on their efforts to launch new products and services involving emerging technologies, and she has assisted dozens of clients with their efforts to prepare for and comply with federal and state laws, including the California Consumer Privacy Act, the Colorado AI Act, and other state laws. As part of her practice, she also regularly represents clients in strategic transactions involving personal data, cybersecurity, and artificial intelligence risk and represents clients in enforcement and litigation postures.

Libbie represents clients across industries, but she also has deep expertise in advising clients in highly-regulated sectors, including financial services and digital health companies. She counsels these companies — and their technology and advertising partners — on how to address legacy regulatory issues and the cutting edge issues that have emerged with industry innovations and data collaborations.

Chambers USA 2025 ranks Libbie in Band 3 Nationwide for both Privacy & Data Security: Privacy and Privacy & Data Security: Healthcare. Chambers USA notes, Libbie is “incredibly sharp and really thorough. She can do the nitty-gritty, in-the-weeds legal work incredibly well but she also can think of a bigger-picture business context and help to think through practical solutions.”

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Photo of Matthew Verdin Matthew Verdin

Matthew Verdin focuses on defending clients in the technology and financial services sectors. He has a strong record of delivering wins on behalf of clients in class actions and complex litigation, particularly in privacy and consumer protection lawsuits. Matthew is particularly successful in…

Matthew Verdin focuses on defending clients in the technology and financial services sectors. He has a strong record of delivering wins on behalf of clients in class actions and complex litigation, particularly in privacy and consumer protection lawsuits. Matthew is particularly successful in securing dismissals at the pleadings stage. For example, he won dismissal at the pleadings stage of over a dozen wiretapping class actions involving the alleged use of website analytics tools to collect data about users’ website visits. He also advises companies on managing litigation risk under federal and state wiretapping laws.

Matthew is also dedicated to pro bono legal services. Recently, he helped a domestic violence survivor win a case in the California Court of Appeal. Matthew’s oral argument led to the court ordering renewal of his client’s restraining order just one day later.

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Photo of Julia Barrero Julia Barrero

Julia Barrero is an associate in the firm’s San Francisco office and a member of the Environmental and Energy Practice Group. She advises clients on their environmental compliance and advocacy priorities at the state and federal level. Her representative matters span a wide…

Julia Barrero is an associate in the firm’s San Francisco office and a member of the Environmental and Energy Practice Group. She advises clients on their environmental compliance and advocacy priorities at the state and federal level. Her representative matters span a wide array of issues, including greenhouse gas regulations, state climate laws, recycling claims, extended producer responsibility programs, federal and state enforcement actions, NEPA compliance, and environmental remediation actions. She also maintains an active pro bono practice.

Prior to practicing law, Julia worked at startups and technology companies in San Francisco, helping them strategically build products and target key markets.

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Photo of Bryan Ramirez Bryan Ramirez

Bryan Ramirez is an associate in the firm’s San Francisco office and is a member of the Data Privacy and Cybersecurity Practice Group. He advises clients on a range of regulatory and compliance issues, including compliance with state privacy laws. Bryan also maintains…

Bryan Ramirez is an associate in the firm’s San Francisco office and is a member of the Data Privacy and Cybersecurity Practice Group. He advises clients on a range of regulatory and compliance issues, including compliance with state privacy laws. Bryan also maintains an active pro bono practice.

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  • Posted in:
    Privacy and Cybersecurity
  • Blog:
    Inside Privacy
  • Organization:
    Covington & Burling LLP
  • Article: View Original Source

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