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Freedom251 › Blog › California

California’s SB 690 Limits One Type of Website-Tracking Lawsuit, Sparking a Privacy Fight

By Freedom251 Team · · 4 min read

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California’s new SB 690 does not repeal the state’s wiretapping law or make all website tracking lawful. Instead, starting January 1, 2027, it gives the California Attorney General exclusive authority to bring a particular kind of claim under the California Invasion of Privacy Act (CIPA): a section 638.51 pen-register or trap-and-trace claim against a private actor over conduct on a website or app. The law also reaches certain pending claims, so its effect will depend on the claim and when the action began.

What California changed

SB 690 narrows who may bring a CIPA claim under section 638.51 when the alleged conduct involves an internet website, online application, or mobile application. For those covered actions against private actors, the California Attorney General is the only party authorized to sue under that provision. The chaptered bill record describes the change and its scope in CalMatters Digital Democracy’s SB 690 record.

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Section 638.51 concerns pen-register and trap-and-trace devices, a category of claims commonly applied to online collection of metadata such as IP addresses and routing information. SB 690 was signed by Gov. Gavin Newsom on September 30, 2026, and takes effect January 1, 2027. It changes the enforcement route for this defined claim; it does not repeal CIPA or determine whether any particular tracking technology is legal.

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Which claims are affected—and which are not

CIPA provision or claim What it concerns Effect of SB 690
Section 638.51 Pen-register and trap-and-trace claims, often framed around metadata such as IP addresses and routing information For covered website and app conduct against private actors, only the California Attorney General may bring the action.
Sections 631 and 632 Wiretapping and eavesdropping provisions SB 690’s final version does not eliminate these potential bases for claims.

The distinction matters: the law targets a private enforcement route for one statutory provision in a defined online context. It does not bar every private lawsuit about website tracking. Plaintiffs may still explore other CIPA provisions, the federal Wiretap Act, or other statutory and common-law theories, but those routes have different legal elements and depend on the facts. DLA Piper’s October 2026 analysis and Proskauer’s analysis discuss those remaining possibilities.

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When the rule takes effect and what retroactivity means

The operative date is January 1, 2027. The enacted provision also applies to covered pending claims in actions commenced within the two years before that date. DLA Piper describes the affected filing window as actions commenced on or after January 1, 2025. Whether the provision applies to a particular pending case may be disputed, and a case may include claims beyond section 638.51; SB 690 therefore does not guarantee dismissal of an entire lawsuit.

Why the final law is narrower than the original proposal

SB 690 began as a broader proposal for a commercial-business-purpose exemption that would have touched multiple CIPA provisions. A California Assembly committee analysis dated July 1, 2026, criticized that proposal as potentially too blunt because it could shield genuine privacy violations. After negotiations, the bill was narrowed to the section 638.51 change for covered online conduct. The broader proposed exemption did not become law.

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The history helps explain why the debate is not simply about whether businesses should face lawsuits over tracking. It concerns which legal claims remain available, who may bring them, and what safeguards should apply when software sends visitor information to third parties.

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Why supporters and privacy advocates disagree

Supporters’ argument: costly suits over routine tools

Business proponents say section 638.51 claims and demand letters have targeted common website tools such as cookies, analytics, and advertising software, creating costly exposure for businesses, including small operators. In a signing statement quoted by CyberScoop, Newsom said the measure addressed what he called the “vexatious use of CIPA lawsuits and demand letters” against small businesses that may unknowingly install software that tracks and shares visitors’ information. Those descriptions reflect the governor’s rationale, not a court finding that every such lawsuit is abusive.

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Privacy advocates’ argument: fewer private remedies

Privacy groups object that people lose the ability to sue under section 638.51 for the covered online conduct, leaving enforcement to the Attorney General. They argue that metadata collection can reveal sensitive information and that limiting private enforcement may weaken consumer privacy remedies. That concern does not establish that every tracker collects sensitive data, nor does the law eliminate every other potential legal claim.

The disagreement reflects competing views of enforcement: business supporters emphasize litigation costs and settlements, while privacy advocates emphasize the role private lawsuits can play in accountability. The Assembly committee analysis records both positions; claims about litigation volume or the scale of privacy harms should be understood as arguments advanced by stakeholders unless independently established.

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What the change means for California businesses and users

For businesses

A practical starting point is to inventory what website and app tools collect, what information they transmit, and where it goes. That can help counsel assess a company’s facts against the relevant legal requirements; an inventory by itself does not guarantee compliance or eliminate litigation risk.

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For website and app users

SB 690 changes who may bring one defined type of claim, not whether every form of online tracking is permitted. The legality of a specific site’s or app’s practices depends on the conduct, the information involved, and the legal theory at issue.

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How the dispute developed

California enacted CIPA in 1967 to address wiretapping, eavesdropping, interception, and recording of telephone communications. Courts have since applied its broad language to online communications. The Legislature added section 638.51 in 2015, creating the pen-register and trap-and-trace provision now at the center of this dispute.

As the bill moved through the 2025–2026 legislative process, the debate shifted from the proposed broad commercial-purpose exemption to a narrower change in private enforcement for online section 638.51 claims. The distinction between that earlier proposal and the enacted law is essential: the final measure did not create a sweeping exemption for commercial tracking.

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CaliforniaCIPAPrivacySB 690technology lawWebsite Tracking

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