We’re pleased to report a significant development regarding California SB 690, a bill addressing the surge of lawsuits impacting online businesses under the California Invasion of Privacy Act (CIPA). On June 3, 2025, California Senate Bill 690, authored by Senator Caballero, successfully passed the Senate Floor with an overwhelming 35-0 vote. This crucial step moves the bill, which EIA has supported, forward in the legislative process.
SB 690 seeks to clarify that certain common business practices involving the processing of personal information are not considered violations of CIPA’s prohibitions against tapping wires, intercepting communications, or using “pen registers” and “trap and trace” devices. The bill introduces an exemption for a “commercial business purpose,” which is defined by referencing California Consumer Privacy Act (CCPA) concepts – specifically, processing personal information either to further a business purpose as defined in the CCPA or when the processing is subject to a consumer’s opt-out rights under the CCPA. This exemption is intended to address concerns that trial lawyers are using an outdated 1967 wiretapping statute to target standard online activities like website analytics or advertising, activities often already regulated by the CCPA.
The bill was amended on May 29, 2025 to remove a provision stating that it would apply retroactively to any case pending as of January 1, 2026, which is the date the new law would become effective if it is ultimately signed into law. This retroactivity provision had been noted as a concern by some opponents to the bill, including some senators during committee hearings. Therefore, if passed into law, the bill would now only provide relief to stop abusive lawsuits, but regrettably would not help companies who have already been sued.
Nevertheless, this successful Senate vote is a positive development for the ecommerce community, which has far too often been targeted by these frivolous CIPA cases related to website technologies. The strong bipartisan support (35-0) suggests broad recognition of the need to address the issue.
With passage in the Senate secured, SB 690 now advances to the California Assembly for further consideration. We will continue to monitor its progress.
